Definition ∞ An investor conviction metric is an analytical tool used to gauge the strength of belief or confidence investors hold in a particular digital asset or market trend. This metric can be derived from various data points, such as long-term holding patterns, derivatives market positioning, or social sentiment analysis. A high conviction metric suggests strong belief in an asset’s future performance, while a low metric indicates uncertainty or skepticism. It helps assess market sentiment.
Context ∞ Market analysts frequently reference investor conviction metrics to explain market resilience during downturns or the sustainability of upward price movements. News often discusses how these indicators influence trading strategies and overall market direction in the volatile digital asset space. Understanding these metrics provides insight into the underlying psychological factors driving market behavior.
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