Investor refusal to sell refers to a market behavior where holders of a digital asset elect not to liquidate their positions, even during periods of significant price volatility or substantial market downturns. This strong holding conviction, frequently termed “HODLing,” indicates a belief in the asset’s long-term value or a reluctance to realize losses. It can contribute to reduced selling pressure and illiquidity in the market. This collective action can significantly influence price dynamics.
Context
News articles often cite investor refusal to sell as a factor supporting asset prices during bear markets or as a sign of strong community sentiment. This phenomenon is particularly notable in assets with robust community backing or those widely perceived as long-term stores of value. Analyzing on-chain metrics related to holding periods helps accurately gauge the extent of this investor behavior.
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