Buyer Power

Definition ∞ Buyer power represents the influence or capacity of purchasers in a market to affect the price or terms of digital assets. In cryptocurrency markets, strong buyer power indicates significant demand that can drive asset prices upwards. This power is often reflected in high trading volumes, large buy orders, and positive market sentiment. It represents the collective ability of market participants to absorb selling pressure.
Context ∞ News analysis frequently discusses buyer power in relation to market rallies or support levels for various digital assets. Reports on institutional adoption or large capital inflows often correlate with an increase in buyer power. Understanding this concept helps interpret market momentum and potential price movements.