Definition ∞ A capital market signal is any piece of information or data that influences investor decisions and asset valuations within financial markets. In the digital asset sphere, these signals can originate from on-chain data, trading volumes, regulatory announcements, or macroeconomic trends. Such signals guide participants in assessing market direction and potential investment opportunities. They serve as indicators of underlying supply and demand dynamics, affecting price discovery.
Context ∞ Crypto news often highlights various capital market signals to explain price movements and forecast future trends. For example, a significant increase in stablecoin transfers to exchanges might signal impending buying pressure. Conversely, large outflows of assets from exchanges could suggest a preference for long-term holding. Understanding these signals is essential for market participants to react strategically to developing market conditions and adjust their positions accordingly.