Hodl Sentiment

Definition ∞ Hodl sentiment is a prevailing market attitude among cryptocurrency holders characterized by a strong intention to retain digital assets rather than sell them, even during periods of price volatility. This sentiment reflects long-term conviction in an asset’s future value, often irrespective of short-term market fluctuations. It signifies a belief in the fundamental utility or scarcity of the digital asset. This approach contrasts sharply with speculative trading.
Context ∞ News articles often reference hodl sentiment when discussing investor behavior and the long-term outlook for specific cryptocurrencies. A high hodl sentiment can indicate strong community support and a reduced available supply for sale, potentially influencing future price movements. Observing this sentiment provides insight into the psychological undercurrents of the market.