Definition ∞ Speculative demand refers to the desire to acquire digital assets primarily for the expectation of future price appreciation, rather than for their immediate utility or intrinsic value. This demand is driven by the belief that an asset can be sold at a higher price at a later date. It plays a significant role in volatile markets like cryptocurrency. Such demand can lead to rapid price increases.
Context ∞ Speculative demand is a key factor influencing price movements in the cryptocurrency market and is often analyzed in crypto news. High speculative interest can fuel bull runs, while a decrease can lead to price corrections. Understanding the drivers of speculative demand helps market participants gauge overall market sentiment and potential price trajectories.
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