Definition ∞ Veteran holder outflows refer to the movement of digital assets out of wallets that have held them for a significantly long duration, typically over a year or more. This metric indicates that experienced or long-term investors are selling or transferring their holdings. Such outflows can signal profit-taking, a loss of long-term conviction, or a reallocation of capital.
Context ∞ Observing veteran holder outflows is a key on-chain indicator for assessing market sentiment and potential supply-side pressure in cryptocurrency markets. Significant outflows often precede or coincide with market peaks, as long-term holders realize gains. Analysts closely monitor these movements to understand the distribution dynamics and anticipate potential shifts in market direction.
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