Crypto Market Indicators

Definition ∞ Crypto market indicators are statistical tools and data points used by analysts and traders to assess the current state and potential future direction of digital asset markets. These indicators include metrics such as trading volume, market capitalization, volatility indices, funding rates, and on-chain data like active addresses or transaction counts. They provide quantitative insights into market sentiment, price momentum, and underlying network activity. Observing these helps in formulating trading strategies.
Context ∞ Crypto news frequently cites various market indicators to explain price movements, predict market reversals, or gauge investor interest. Reports might highlight a surge in derivatives open interest or a significant shift in stablecoin dominance as signals of impending market changes. Technical analysis often relies heavily on these indicators to interpret chart patterns and make informed predictions about asset performance.