Smart Money Positioning

Definition ∞ Smart money positioning refers to the collective actions and holdings of experienced and well-informed investors in the digital asset markets. This includes institutional investors, large holders, and sophisticated traders whose movements are often seen as predictive of future market trends. Analyzing their on-chain or exchange activity can offer insights into potential market shifts.
Context ∞ Tracking smart money positioning is a common analytical approach in crypto news and market analysis, providing signals for other market participants. Reports often scrutinize large transactions and wallet movements to discern these influential trends. The actions of these significant players can have a considerable impact on market sentiment and asset valuations.