Definition ∞ Veteran holder selling describes the divestment of digital assets by long-term investors who have held their holdings for extended periods, typically over a year. This activity often occurs during significant price rallies, as these experienced participants choose to realize profits accumulated over market cycles. It can introduce substantial selling pressure into the market. This behavior often signals a shift in market sentiment from long-term accumulation to profit realization.
Context ∞ News reports frequently analyze veteran holder selling as an indicator of potential market tops or periods of price consolidation, especially after prolonged upward trends. On-chain analytics tools often track the movement of “old” coins to exchanges to identify this phenomenon. The extent of veteran holder selling provides insight into the conviction levels of long-term investors and can influence the short-to-medium term market direction.
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