Retail Investor Activity

Definition ∞ Retail investor activity describes the collective buying and selling actions of individual, non-professional investors in the digital asset market. This activity is often characterized by smaller transaction sizes and can be more reactive to market sentiment or news events. It represents a significant component of overall market volume and liquidity.
Context ∞ News frequently reports on retail investor activity as an indicator of broad market interest and sentiment. High retail participation can contribute to rapid price movements, both upward and downward. Understanding the dynamics of retail investment helps in assessing market speculation versus fundamental adoption, offering insights into market volatility and stability.