Definition ∞ Low spending behavior in cryptocurrency markets indicates that holders are retaining their digital assets rather than transacting them. This suggests a preference for holding over selling, often driven by a belief in future price appreciation or a lack of immediate need for liquidity. It contrasts with periods of high spending where assets frequently change hands.
Context ∞ Crypto news often reports on low spending behavior as a sign of strong investor conviction and reduced selling pressure. On-chain metrics, such as increased dormancy or a rise in the number of coins held for extended periods, provide evidence of this trend. Understanding this behavior helps analysts assess market sentiment and predict potential supply shocks.
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