Portfolio Resets

Definition ∞ Portfolio resets describe the process where investors rebalance their asset holdings, often in response to market changes, performance deviations, or shifts in investment goals. This involves selling assets that have performed well and buying those that have underperformed, or adjusting allocations to maintain desired risk levels. It is a periodic adjustment of investment positions to align with strategic objectives.
Context ∞ In cryptocurrency markets, portfolio resets are common during periods of high volatility or significant price movements, as investors adjust their exposure to various digital assets. These actions can contribute to market trends and impact the prices of specific tokens. News often covers how major investors or institutions are conducting portfolio resets in response to market conditions and regulatory developments.