Long-Term Holder Confidence

Definition ∞ Long-Term Holder Confidence signifies the sustained belief and conviction of market participants who retain their digital assets over extended periods, typically for several years. This metric reflects a strong fundamental outlook on an asset’s future value, irrespective of short-term market fluctuations. High long-term holder confidence often indicates a robust and resilient asset base. It is a key indicator of market maturity and collective investor sentiment.
Context ∞ Long-Term Holder Confidence is a crucial on-chain metric frequently analyzed in cryptocurrency news to gauge market strength and potential future price movements. Periods of increasing confidence often precede bull markets, as fewer holders are willing to sell their assets. Conversely, a decline might signal a shift in market sentiment or a broader distribution phase.