Genuine Market Flow

Definition ∞ Genuine Market Flow refers to the organic and fundamental buying and selling activity of market participants, driven by actual supply and demand, rather than artificial or manipulative trading strategies. This flow reflects the true sentiment and economic decisions of investors and traders. It provides an accurate representation of an asset’s price discovery process. Distinguishing genuine flow from synthetic or wash trading is crucial for assessing market health and liquidity.
Context ∞ In cryptocurrency markets, the concept of Genuine Market Flow is particularly important due to historical concerns about market manipulation and inflated trading volumes. News reports often scrutinize exchange data to ascertain the authenticity of reported trading activity, aiming to identify true demand and supply. The discussion frequently involves methodologies for filtering out wash trading and other deceptive practices to present a clearer picture of market dynamics. Understanding genuine market flow helps investors make more informed decisions and regulators assess market integrity.