Long-Horizon Wallets

Definition ∞ Long-horizon wallets refer to cryptocurrency addresses or storage solutions associated with entities that hold digital assets for extended periods, typically indicating a long-term investment strategy. These wallets exhibit minimal outbound transactions, suggesting that the holders are not actively trading or spending their assets. Analyzing activity in these wallets can provide insights into the conviction of long-term holders. Such wallets are often considered a sign of strong market confidence.
Context ∞ Long-horizon wallets are a key metric used in on-chain analysis to assess market sentiment and potential future supply dynamics. A growing number of assets held in these wallets often suggests accumulation by investors who anticipate future price appreciation, potentially reducing the available selling supply. News and market reports frequently cite data from these wallets to support analyses of market stability and investor behavior. Monitoring these trends offers valuable insights into the broader market structure.