Institutional Demand Reversal

Definition ∞ Institutional demand reversal signifies a change in the prevailing buying or selling pressure from large financial entities in the digital asset market. It marks a shift from a period of consistent demand to a period of declining demand, or vice versa. This change can be a precursor to significant price movements. It reflects an alteration in institutional investment conviction.
Context ∞ News detailing an institutional demand reversal for a cryptocurrency carries substantial weight for market participants. A reversal from buying to selling pressure can signal a bearish outlook, potentially leading to price depreciation. Conversely, a shift from selling to buying can indicate renewed confidence, providing crucial context for market forecasting.