Short-Term Investor

Definition ∞ A Short-Term Investor is an individual or entity that purchases assets with the intention of holding them for a relatively brief period, typically less than one year, to profit from rapid price fluctuations. These investors often react quickly to market news and technical indicators. Their investment horizon is focused on immediate gains.
Context ∞ In cryptocurrency markets, short-term investors significantly contribute to daily trading volume and market volatility. News articles frequently analyze their behavior, such as their reactions to macroeconomic data or regulatory announcements, which can cause rapid price movements. Understanding the actions of short-term investors is essential for interpreting market sentiment and liquidity dynamics.