Digital Asset Divergence

Definition ∞ Digital asset divergence occurs when the price movements or performance trajectories of distinct digital assets begin to move in opposing directions. This indicates a decoupling of previously correlated market trends among various cryptocurrencies. It signals a shift in market dynamics.
Context ∞ Market analysts frequently monitor digital asset divergence to identify changes in investor sentiment or fundamental valuations across different sectors of the digital economy. Such events can indicate a reallocation of capital, a re-evaluation of specific project merits, or the emergence of new market narratives.