Definition ∞ A three year holder drop signifies a reduction in the number of cryptocurrency addresses that have held a particular digital asset for at least three years. This metric suggests that a segment of long-term investors, who have held through various market conditions, are now selling their holdings. It can indicate a shift in market sentiment or a period of significant profit-taking.
Context ∞ A three year holder drop is an important on-chain signal that can precede or accompany periods of increased selling pressure in the market. It provides valuable context for understanding the behavior of seasoned investors and their conviction levels. This trend helps analysts assess the potential for further supply entering the market, influencing short to medium-term price action.
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