Smart Money

Definition ∞ Smart money refers to capital deployed by experienced traders, institutional investors, or other market participants who are perceived to possess superior analytical capabilities or privileged information. The actions of smart money are often closely observed by other market participants seeking to infer future price movements. It represents a concentration of informed capital.
Context ∞ Analysis of smart money movements in crypto news typically involves tracking large wallet transactions, identifying patterns in derivatives markets, or observing the allocation strategies of venture capital firms. Such observations are used to infer sophisticated market sentiment and potential directional shifts in digital asset prices.