Definition ∞ Dry Powder High refers to a market condition where investors, particularly institutional ones, hold significant amounts of uninvested capital. This capital is typically in stable assets like cash or stablecoins, awaiting opportune moments for deployment. It indicates substantial potential for future market entry or asset acquisition.
Context ∞ The current market displays a dry powder high, suggesting cautious sentiment among large investors who retain capital on the sidelines. This situation often leads to speculation about when this capital will enter the market, potentially driving prices upward. Observing this metric provides insight into latent demand and possible future market movements.