Accumulation during Weakness

Definition ∞ Accumulation during weakness describes the strategic acquisition of digital assets when their market value experiences a decline. This behavior suggests a belief in the asset’s long-term potential despite current downward price movements. Investors or entities typically view such periods as opportunities to increase their holdings at reduced costs. It reflects a calculated market posture rather than reactive selling.
Context ∞ Crypto news often reports on accumulation during weakness as an indicator of investor confidence or institutional interest following significant market downturns. Analysts monitor on-chain data to identify patterns of increased buying activity from specific wallet cohorts during price dips. Observing this trend helps assess underlying market sentiment and potential for future price recovery.