Definition ∞ Investor demand refers to the total quantity of a particular asset or security that investors are willing and able to purchase at various price levels. This metric is a key indicator of market sentiment and directly influences asset prices and trading volumes. High investor demand typically signals confidence and can drive prices upward. Conversely, low demand often indicates caution or disinterest, potentially leading to price declines.
Context ∞ In cryptocurrency news, investor demand is a central factor in analyzing market movements and predicting price trajectories for digital assets. Significant increases in institutional investor demand, for example, often correlate with market rallies for major cryptocurrencies. Conversely, a decline in retail or institutional interest can signal a cooling market. Monitoring metrics such as exchange inflows, trading volumes, and derivative open interest provides insight into prevailing investor demand for various digital assets.
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