Definition ∞ A Five-Year Supply Low signifies a historical point where the circulating supply of a particular digital asset reaches its lowest level over a half-decade period. This metric indicates that fewer units of the asset are actively moving or available for purchase in the market. It often reflects a trend of increasing scarcity or long-term holder accumulation.
Context ∞ News reports often highlight a five-year supply low as a key on-chain metric for assessing market sentiment and potential future price movements. Such a condition can suggest a strong holding preference among existing owners, reducing selling pressure. This metric provides crucial context for understanding the supply dynamics of a digital asset and its potential for price appreciation.
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