Definition ∞ Monthly Position Change refers to the net alteration in the holdings or exposure of an investor or a group of investors to a specific asset over a one-month period. This metric indicates whether participants are increasing or decreasing their long or short positions. It provides insight into shifts in market sentiment and capital allocation. A significant change can signal a notable adjustment in investment strategy.
Context ∞ Monthly position changes are a key data point for analysts tracking investor behavior and capital flows within cryptocurrency markets. Observing consistent increases or decreases in positions by large holders can indicate underlying market conviction or caution. This metric assists in understanding broader market movements and potential price catalysts.