Definition ∞ Market Re-Risking describes a shift in investor sentiment where participants become more willing to allocate capital to assets perceived as having higher risk but also greater potential returns. This typically occurs during periods of economic optimism or when traditional safe-haven assets yield low returns. In digital assets, it often results in increased capital flow into altcoins or emerging protocols.
Context ∞ The current discussion surrounding Market Re-Risking in crypto news often relates to periods when investors move capital from stablecoins or Bitcoin into more volatile, smaller-cap digital assets. A critical development to observe involves macroeconomic indicators that signal a return to growth, prompting a broader appetite for risk across global financial markets. This shift can significantly influence the performance of various digital asset categories.