Definition ∞ Holder cohort behavior refers to the collective actions and trends exhibited by distinct groups of digital asset holders, segmented by their acquisition time or holding duration. Analyzing these cohorts provides insights into how different investor segments react to market events and price movements. This analysis helps to understand market sentiment and potential future supply or demand shifts.
Context ∞ On-chain analytics frequently employs holder cohort behavior to identify accumulation or distribution patterns across various investor groups. Observing the spending or holding habits of long-term versus short-term holders offers valuable predictive signals for market direction. This metric is a key component in understanding market structure and anticipating significant shifts in asset prices.