Definition ∞ Crypto market conviction refers to the collective confidence and resolve among participants regarding the future price direction of digital assets. This sentiment reflects a strong belief in the sustained growth or decline of the market. High conviction indicates that investors are holding or acquiring assets with confidence, expecting positive outcomes. Low conviction suggests uncertainty or a lack of strong directional belief.
Context ∞ Market analysts frequently assess crypto market conviction to gauge investor behavior and potential market movements. News articles often cite indicators of conviction, such as long-term holder activity or on-chain metrics, to explain market trends. A strong market conviction can support price stability and upward momentum, while wavering conviction might precede periods of volatility or consolidation. This concept helps explain why markets hold or sell assets.
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