Veteran Investor Distribution

Definition ∞ Veteran investor distribution refers to the selling activity of long-term cryptocurrency holders who have held their assets through various market cycles. This behavior often occurs after significant price increases, as these experienced participants decide to realize profits. Observing such distribution can signal a potential shift in market momentum. It indicates that seasoned investors are rebalancing their portfolios or taking gains.
Context ∞ Crypto news frequently analyzes veteran investor distribution as an on-chain metric to anticipate potential market corrections or changes in supply dynamics. Reports often interpret this activity as a cautious signal, suggesting that experienced holders believe prices may be reaching a temporary peak. Understanding this distribution provides valuable context for assessing market tops and predicting periods of increased selling pressure. It helps gauge the sentiment of long-term participants.