Sentiment

Definition ∞ Sentiment, in financial markets and particularly within the volatile digital asset space, denotes the prevailing attitude or disposition of investors and traders towards a specific asset or the market as a whole. This collective mood, often gauged through social media analysis, news coverage, and trading patterns, can significantly influence price action and market momentum.
Context ∞ Crypto news frequently analyzes market sentiment, assessing whether the prevailing mood is bullish or bearish based on various indicators, including social media chatter, expert opinions, and news flow. Understanding sentiment is crucial for interpreting price movements and anticipating potential market shifts, as it often acts as a leading or lagging indicator of investor behavior.