Definition ∞ Hodl conviction describes the strong belief and commitment of digital asset holders to retain their investments over extended periods, regardless of market volatility. This term originates from a misspelling of “hold” and has become a common expression in the cryptocurrency community. It reflects a long-term investment strategy based on fundamental belief in an asset’s future value. High hodl conviction can contribute to price stability.
Context ∞ Crypto news often discusses hodl conviction as a sentiment indicator, particularly during bear markets or periods of significant price corrections. Analysts examine on-chain data, such as coin age distribution, to assess the strength of this conviction among market participants. A strong hodl conviction suggests underlying confidence in an asset’s long-term potential, often contrasting with short-term speculative trading.
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