Dormant Coin Spending

Definition ∞ Dormant coin spending refers to the movement of cryptocurrency that has remained unspent in a wallet address for an extended period. This activity indicates that long-term holders, often referred to as “hodlers,” are liquidating a portion of their holdings. Such spending can be a significant market signal, suggesting a change in conviction or a response to market conditions. The age of the coins moved provides insight into the behavior of different investor cohorts.
Context ∞ When dormant coins are spent, it often generates considerable attention in crypto news and market analysis. Reports track these movements to identify potential selling pressure, especially if large quantities of previously inactive coins enter exchanges. This metric helps analysts gauge the sentiment of long-term investors and anticipate shifts in market supply, influencing short-term price predictions for digital assets.