Investor Accumulation

Definition ∞ Investor accumulation describes the sustained process where market participants acquire increasing amounts of a particular digital asset over time. This activity suggests a positive long-term outlook and a belief in the asset’s future value. It often occurs during periods of price stability or decline.
Context ∞ On-chain data analysts closely track investor accumulation patterns to identify potential shifts in market sentiment and future price movements. Significant accumulation by large holders, often termed “whales,” can precede substantial price increases. Understanding these trends provides insight into market supply dynamics and investor conviction.