Definition ∞ Short-term de-risking involves temporarily reducing exposure to volatile assets or market positions to mitigate potential losses over a brief period. This strategy often entails converting digital assets into stablecoins or fiat currency in anticipation of market corrections or heightened uncertainty. It aims to protect capital from immediate downside movements. Investors employ this to safeguard value.
Context ∞ In cryptocurrency news, short-term de-risking is a common topic during periods of market volatility or macroeconomic uncertainty. Reports often observe shifts in capital from more speculative cryptocurrencies into stablecoins as investors seek temporary refuge. This behavior can precede significant market corrections or reflect a cautious sentiment among participants. Understanding these de-risking trends helps interpret broader market sentiment and potential price action.
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