Definition ∞ Spot market flows refer to the real-time movement of digital assets between buyers and sellers on immediate delivery exchanges. These flows reflect the actual buying and selling pressure for an asset at its current market price. Analyzing spot market flows provides direct insight into immediate supply and demand dynamics, influencing short-term price action. They represent the fundamental transactions driving an asset’s valuation.
Context ∞ The current discussion around spot market flows in cryptocurrency markets often focuses on their direct impact on price discovery and short-term volatility. A key debate exists on how external factors, such as derivatives trading or macroeconomic news, influence these underlying spot transactions. Monitoring spot market flows provides critical context for understanding immediate market sentiment and anticipating price fluctuations, offering a granular view of trading activity.