Strong Hands Buying

Definition ∞ Strong hands buying describes the market activity where long-term investors or institutions accumulate digital assets, often during price declines or periods of market uncertainty. These buyers typically possess a high conviction in the asset’s future value and are less likely to sell during subsequent price volatility. Their purchasing behavior suggests underlying confidence and contributes to a more stable demand base. This action indicates a belief in sustained appreciation.
Context ∞ News analysis frequently references strong hands buying as a positive indicator, suggesting that resilient investors are entering or adding to positions, thereby absorbing selling pressure. This trend is often identified through on-chain metrics that track the movement of coins from short-term to long-term holding addresses. The presence of strong hands buying can signal a potential market bottom or a period of consolidation before an upward price movement.