Definition ∞ A market composition shift describes a significant change in the types of participants, assets, or trading strategies dominating a financial market. This alteration can result from new technologies, regulatory changes, or evolving investor preferences. It reconfigures the fundamental structure and dynamics of market activity. Such shifts can have lasting effects on asset valuations and liquidity.
Context ∞ The digital asset space is continuously experiencing market composition shifts, with institutional adoption and new financial products frequently altering its structure. News often reports on the increasing presence of traditional finance entities and their impact on market behavior. These shifts are critical for understanding the ongoing maturation and institutionalization of the crypto economy.