Long-Term Holders Selling

Definition ∞ Long-term holders selling refers to the market behavior where individuals who have held digital assets for extended periods begin to divest their holdings. This action often indicates a belief that an asset has reached its peak valuation or that market conditions are deteriorating. Significant selling pressure from this cohort can signal a potential market top or a period of price correction. Observing this trend helps analysts gauge market sentiment and future price action.
Context ∞ Long-term holders selling is a key on-chain metric frequently analyzed in crypto news to assess market health and potential shifts in sentiment. The current discussion often involves comparing current selling patterns with historical cycles to predict future market movements. This behavior is a critical data point for understanding supply dynamics and investor conviction within the digital asset space.