Definition ∞ Hodler spending habits refer to the patterns and frequency with which long-term holders of cryptocurrencies move or sell their digital assets. This behavior is a key indicator of market sentiment and supply dynamics, as “hodlers” typically retain assets through market volatility, indicating strong conviction. When these long-term holders begin to spend or sell their assets, it can signal a shift in market cycles or a response to significant price movements. Analyzing these habits helps market participants gauge the potential for increased selling pressure or a change in supply availability.
Context ∞ Crypto news often analyzes hodler spending habits, particularly the movement of coins that have remained dormant for extended periods, as a signal for potential market tops or bottoms. Metrics such as “Spent Output Profit Ratio” (SOPR) or “Coin Days Destroyed” (CDD) are used to track these movements. The current discussion centers on whether recent increases in long-term holder spending indicate profit-taking or a more fundamental shift in market structure, influencing future price predictions for major digital assets.
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