Definition ∞ Risk asset demand refers to the overall willingness and desire of investors to acquire assets that carry a higher degree of price volatility and potential for loss, yet also offer the possibility of substantial returns. In the context of digital assets, this typically applies to cryptocurrencies, which are often perceived as higher-risk investments compared to traditional assets. It reflects investor appetite for speculative growth.
Context ∞ Changes in risk asset demand are a frequent topic in crypto news, as they significantly influence market valuations. During periods of economic optimism, demand for digital assets often increases, while during times of uncertainty, investors may shift towards safer assets. This metric serves as a gauge for broader market sentiment and capital allocation trends.