Speculative Assets

Definition ∞ Speculative Assets are financial instruments or commodities acquired with the expectation that their value will increase significantly over a short period, often without regard for intrinsic value or immediate utility. Their prices are frequently driven by market sentiment, future expectations, and perceived scarcity rather than current income generation or fundamental worth. Such assets carry a high degree of risk due to their price sensitivity to changing perceptions.
Context ∞ In the digital asset domain, most cryptocurrencies are broadly considered Speculative Assets due to their nascent stage of development and the absence of widespread established utility in many cases. Discussions often focus on the factors influencing their price discovery, including technological advancements, adoption rates, and macroeconomic conditions. News frequently reports on price surges or declines attributed to speculative trading activity and investor sentiment shifts.