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.
Context ∞ Crypto news often analyzes long-term investor selling as a key indicator of market sentiment and potential trend reversals. On-chain metrics tracking coin age and realized profits are crucial for identifying these patterns. The current discussion often debates whether a recent uptick in selling by seasoned holders represents a healthy market correction or a warning sign of an impending downturn.