Definition ∞ Investor conviction low describes a market state characterized by a significant decrease in confidence among digital asset holders, leading to reduced willingness to retain assets. This condition often manifests as increased selling pressure, reduced accumulation, and general market pessimism. It indicates a period where investors lack strong belief in an asset’s future price appreciation.
Context ∞ Periods of investor conviction low are typically observed during market downturns or prolonged bear markets in the cryptocurrency space. Such conditions often precede capitulation events, where weaker hands exit the market, potentially setting the stage for an eventual recovery. Recognizing this state is important for identifying potential market bottoms and subsequent accumulation opportunities.
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