Random Runs

Definition ∞ Random runs, in a market context, refer to seemingly unpredictable periods of rapid price movement for an asset, often without clear fundamental catalysts. These movements can be attributed to short-term speculative activity, technical trading patterns, or low liquidity conditions. Such runs can be difficult to predict and often result in high volatility. They represent transient market inefficiencies or short-lived speculative interest.
Context ∞ The current discussion around random runs in cryptocurrency markets often attempts to distinguish them from sustained trends, advising caution against making long-term investment decisions based solely on these volatile events. A key debate exists on whether these runs are purely random or if underlying, albeit obscure, factors are at play. Observing random runs provides context for understanding market exuberance or panic, highlighting the speculative nature of certain digital asset movements.