Institutional Flow

Definition ∞ Institutional flow describes the capital movement by large financial entities within the digital asset market. This term refers to the buying and selling activity of banks, hedge funds, asset managers, and other significant corporate investors in cryptocurrencies. Positive institutional flow indicates increasing capital allocation by these entities, often viewed as a sign of growing market maturity and acceptance. Conversely, negative flow suggests a withdrawal of such capital.
Context ∞ Crypto news regularly analyzes institutional flow as a primary indicator of market sentiment and future price direction for major digital assets. Significant capital injections from institutions can provide market validation and contribute to price appreciation. Conversely, sustained outflows may signal a loss of confidence or a shift in investment strategies among large players.