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Crypto Market Rebalancing

Definition

Crypto Market Rebalancing is the process of adjusting the proportions of different cryptocurrencies within an investment portfolio to maintain a desired asset allocation. This action typically occurs when market fluctuations cause certain assets to deviate from their target percentages. Rebalancing helps manage risk and ensure the portfolio aligns with an investor’s financial objectives. It is a common strategy employed by both individual and institutional digital asset holders.