Long-Term Holder

Definition ∞ A long-term holder in the digital asset market refers to an individual or entity that retains a cryptocurrency asset for an extended duration, typically exceeding one year. This holding strategy often reflects a belief in the asset’s fundamental value and future appreciation, rather than short-term speculative trading. Long-term holders are generally less reactive to market volatility, contributing to market stability. Their behavior is often analyzed to gauge overall market sentiment and accumulation trends.
Context ∞ The activity of long-term holders is a frequently reported metric in cryptocurrency market analysis, often used to indicate market strength or weakness. News articles often cite shifts in long-term holder behavior as a signal for potential market reversals or sustained price movements. Their collective actions can exert significant influence on supply dynamics and market psychology within the digital asset ecosystem.