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Long-Term Investor Selling

Definition

Long-term investor selling refers to the divestment of digital assets by individuals or entities who have held them for an extended period. This activity is typically observed when assets move from older, dormant wallets to exchanges, indicating that these holders are realizing profits or rebalancing portfolios. While some selling is natural in a healthy market, a sustained increase in long-term investor selling can signal a decrease in conviction or a belief that the market has reached a significant peak. It can exert considerable downward pressure on prices.