Definition ∞ Long-term holder cost represents the average acquisition price of digital assets held by participants who have retained their holdings for an extended duration, typically exceeding several months or a year. This metric provides insight into the profitability or loss of patient investors. It helps identify price levels where a significant portion of the long-term supply was accumulated. This data can indicate strong support or resistance zones in market cycles.
Context ∞ In crypto news, long-term holder cost is a frequently cited on-chain metric used to assess market sentiment and potential price floors. When the market price approaches or falls below this cost basis, it can signal a period of capitulation or a potential market cycle bottom. Analysts monitor this metric to understand the conviction of experienced participants and to identify strategic accumulation zones.
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