LTH Spending Drop refers to a decrease in the spending activity of long-term holders of a digital asset. Long-term holders are addresses that have held their assets for an extended period, typically over 155 days, indicating a strong conviction in the asset’s future value. A drop in their spending suggests they are not liquidating their positions, even during market fluctuations or price rallies. This behavior often signals accumulation or holding patterns, removing selling pressure from a significant portion of the supply.
Context
LTH Spending Drop is a key on-chain metric analyzed in cryptocurrency news to gauge market sentiment and potential price movements. When this metric declines, it is often interpreted as a bullish signal, indicating that experienced investors are retaining their assets, which reduces available supply for sale. Reports frequently cite this trend to support arguments for underlying market strength or a coming supply squeeze.
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