Large Holder Buying

Definition ∞ Large holder buying refers to significant acquisition activity by entities holding a substantial amount of a particular digital asset. These buyers, often termed “whales” or institutional investors, execute purchases that are large enough to be noticeable on-chain or through market data. Such concentrated buying can indicate strong conviction in an asset’s future price appreciation. It often precedes upward price movements due to increased demand and reduced circulating supply.
Context ∞ Large holder buying is a key metric observed by market analysts to gauge bullish sentiment and potential market reversals. News frequently highlights on-chain data showing whale accumulation as an indicator of an impending price rally. The discussion often centers on whether these large purchases represent genuine accumulation or strategic positioning before market manipulation.