Definition ∞ Minimal distribution in cryptocurrency can refer to a low volume of asset transfers out of significant holdings, such as those held by long-term investors or institutions. It can also relate to regulatory concepts like Required Minimum Distributions (RMDs) for crypto assets in retirement accounts, where a specific minimum amount must be withdrawn annually. A low distribution rate generally suggests holders are not actively selling their assets.
Context ∞ For long-term holders, minimal distribution of their assets often indicates a conviction in the asset’s future value, reducing immediate selling pressure on the market. In retirement planning, RMDs apply to crypto IRAs, meaning assets must be sold for USD to meet withdrawal requirements, impacting individual liquidity. Monitoring distribution patterns can provide insights into investor sentiment and potential supply dynamics.
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