Definition ∞ Deep spot demand signifies a substantial and sustained buying interest for an asset at its current market price for immediate delivery. This indicates strong conviction from purchasers who are acquiring the asset directly, rather than through derivatives or futures contracts. Such demand can exert upward pressure on prices and reduce available supply on exchanges.
Context ∞ In cryptocurrency markets, deep spot demand is frequently analyzed as a metric for genuine market conviction and institutional accumulation. When news reports indicate significant off-exchange or direct purchases, it suggests a reduced likelihood of immediate selling pressure. This type of demand is particularly relevant for understanding long-term price trends and the fundamental health of a digital asset market.
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