Definition ∞ Long term holder belief represents the strong conviction of investors who retain their digital assets for extended periods, regardless of short-term price movements. This refers to the collective sentiment among market participants who hold cryptocurrencies for years, often driven by a fundamental understanding of the asset’s technology, utility, or future potential. These holders typically resist selling during market volatility, viewing price dips as opportunities for further accumulation. Their sustained holding behavior provides a foundational support for an asset’s market structure.
Context ∞ The strength of long-term holder belief is a key indicator of an asset’s underlying stability and future growth potential, frequently discussed in market analysis. On-chain metrics that track coin age and dormant supply are used to quantify this conviction. A critical development to observe is any significant deviation from this holding pattern, which could signal a fundamental shift in market sentiment.
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