Long Term Holder Buying

Definition ∞ Long term holder buying refers to the acquisition of digital assets by investors who intend to hold them for an extended period. This buying behavior is driven by conviction in the asset’s fundamental value and future growth, rather than short-term speculative gains. It contributes to reducing the liquid supply available on exchanges.
Context ∞ Analysis of long term holder buying activity is a crucial component of on-chain market intelligence, providing insights into the supply-side dynamics of cryptocurrencies. Sustained buying by this cohort often indicates strong underlying market health and can act as a precursor to significant price movements. News often highlights these trends as indicators of market maturity and investor confidence.