Definition ∞ Long holder selling describes the act of established, long-term investors liquidating portions of their digital asset holdings. These individuals or entities have typically held their assets for extended periods, often through multiple market cycles, and their selling can indicate profit-taking or a shift in market outlook. While sometimes interpreted as a bearish signal, it can also represent healthy market rotation or strategic rebalancing. This activity often contrasts with short-term speculative trading.
Context ∞ News and on-chain analytics platforms frequently report on long holder selling to understand market tops or significant distribution phases in cryptocurrency markets. Observing the spending behavior of these experienced market participants provides insights into their assessment of current valuations and future prospects. A sustained increase in long holder selling could suggest a broader market correction or a reallocation of capital across different asset classes.
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