Definition ∞ Holder Conviction describes the strong belief and long-term commitment of cryptocurrency investors to retain their assets despite market volatility or short-term price fluctuations. It indicates a willingness to hold digital assets for extended periods, often driven by a fundamental belief in the technology or future value. High holder conviction can contribute to reduced selling pressure and greater price stability during market downturns. This sentiment is a key psychological factor in crypto market dynamics.
Context ∞ On-chain analysis in crypto news often references holder conviction as a metric to gauge market strength, particularly through indicators like HODL waves or long-term holder supply. A rising holder conviction is frequently interpreted as a bullish signal, suggesting that fewer participants are willing to sell their assets. This concept provides valuable insight into the underlying sentiment and resilience of the digital asset market.
Blockchain Knowledge
Cryptocurrency Foundation
Cryptospace Newsfeed
