Spot Demand

Definition ∞ Spot Demand represents the immediate requirement for a cryptocurrency or digital asset in the current market for immediate purchase and delivery. It is driven by users needing the asset for transactions, immediate investment, or other purposes that require prompt acquisition. High spot demand can exert upward pressure on an asset’s price.
Context ∞ Discussions on Spot Demand often involve analyzing the volume of immediate purchases on cryptocurrency exchanges and the liquidity available for prompt settlement. Analysts are observing whether retail or institutional investors are driving this immediate demand and its correlation with broader market sentiment. The availability of assets for immediate purchase is a key determinant of spot demand’s impact on price.