Deep Market Structure

Definition ∞ Deep market structure refers to the underlying, often less visible, characteristics and dynamics that influence how a financial market operates. This encompasses elements such as order book depth, liquidity across various exchanges, the distribution of asset holdings, and the behavior of different investor cohorts. Understanding these foundational aspects provides insights beyond superficial price movements, revealing the true supply and demand forces at play. It represents the comprehensive framework within which digital assets are traded and valued.
Context ∞ Deep market structure analysis is increasingly prominent in crypto news, as on-chain data allows for greater transparency into these underlying dynamics compared to traditional markets. Analysts use metrics related to wallet balances, exchange flows, and order book activity to discern shifts in market sentiment and potential price direction. This detailed examination helps to explain long-term trends and short-term volatility in digital asset markets.