Definition ∞ Flight to safety is an investment phenomenon where capital moves from higher-risk assets to perceived lower-risk assets during periods of market instability or uncertainty. In the cryptocurrency context, this often means investors selling volatile altcoins to acquire more stable assets like Bitcoin or certain stablecoins. This behavior reflects a general aversion to risk among market participants. It indicates a preference for asset preservation over speculative gains.
Context ∞ Cryptocurrency news frequently reports on flight to safety events during periods of significant market downturns or global economic instability. Analysts monitor capital flows into Bitcoin or stablecoins as an indicator of overall market sentiment and risk appetite. Understanding this dynamic helps explain sudden shifts in asset valuations.
Blockchain Knowledge
Cryptocurrency Foundation
Cryptospace Newsfeed
