Definition ∞ Investor behavior divergence describes situations where different segments of investors in the cryptocurrency market exhibit contrasting patterns of buying, selling, or holding. For example, institutional investors might accumulate an asset while retail investors are selling, or short-term traders might act differently from long-term holders. This divergence indicates varied market perspectives and can precede significant price movements. It highlights a lack of consensus among market participants.
Context ∞ News reports often highlight investor behavior divergence as a signal of market indecision or a potential shift in trend. Analyzing these divergences, typically through on-chain metrics separating different holder cohorts, helps predict whether a price movement has broad support or is driven by specific groups. Such disparities can indicate underlying shifts in market structure or evolving risk appetites among various investor types.
Blockchain Knowledge
Cryptocurrency Foundation
Cryptospace Newsfeed
