Definition ∞ HODL mode describes a long-term investment strategy in the cryptocurrency market where an investor holds onto their digital assets despite price volatility. This approach prioritizes sustained holding over short-term trading, based on a belief in the asset’s future value appreciation. The term originated from a misspelling of “hold” and has become a common mantra among cryptocurrency enthusiasts. It signifies a commitment to long-term market participation.
Context ∞ Crypto news frequently references “HODL mode” when discussing investor sentiment during market downturns or extended periods of sideways price action. This strategy is often contrasted with active trading. The prevalence of HODL behavior can significantly impact market supply dynamics and contribute to an asset’s price stability over longer durations, making it a relevant indicator for market analysts.
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