Definition ∞ Smart money flow refers to the movement of capital by experienced, institutional, or large-scale investors within the cryptocurrency markets. These participants often possess superior information, analytical capabilities, or market influence compared to retail investors. Tracking smart money flow can provide insights into potential future market trends and asset price movements. It is often observed through on-chain data analysis and large transaction monitoring.
Context ∞ News analyses frequently reference smart money flow to explain significant market shifts and predict upcoming trends in digital asset valuations. Current discussions involve refining on-chain metrics to more accurately identify these influential movements and differentiate them from general market activity. Future analytical tools will likely provide more granular data, offering deeper insights into the strategies of sophisticated market participants.
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