Accumulation

Definition ∞ An accumulation refers to the process by which an entity or entities acquire a significant quantity of a digital asset over time. This strategic acquisition is often driven by a belief in the asset’s future value appreciation, distinct from short-term speculative trading. Such activity can signal strong conviction from sophisticated market participants.
Context ∞ In the current market discourse, ‘accumulation’ is frequently discussed in relation to whale activity and the purchasing patterns of long-term investors during periods of price consolidation or decline. Monitoring accumulation trends provides insight into potential future price movements and investor sentiment towards specific digital assets.