Definition ∞ LTH spending decline signifies a reduction in the amount of Bitcoin being moved or sold by long-term holders. This metric indicates that experienced investors are choosing to retain their assets rather than distribute them into the market. A sustained decline in LTH spending often suggests a strong conviction in future price appreciation. It reduces the available supply for new buyers, potentially creating upward price pressure.
Context ∞ The LTH spending decline is a closely watched on-chain metric frequently highlighted in cryptocurrency news and market reports. It serves as a strong indicator of market health and investor confidence, particularly during periods of price consolidation. A low spending rate from these holders provides crucial context for assessing the market’s underlying strength.
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