Structural Demand

Definition ∞ Structural demand in cryptocurrency refers to an underlying, persistent buying interest for digital assets that is not merely speculative or short-term. This demand is often driven by fundamental factors such as increasing adoption, technological utility, institutional capital inflows, or the asset’s perceived long-term value proposition. It represents a foundational support for an asset’s price.
Context ∞ The presence of strong structural demand can help a cryptocurrency withstand selling pressure and market corrections, suggesting a resilient investor base. For Bitcoin, for instance, robust structural demand, evidenced by consistent inflows into spot ETFs, can indicate a healthy market despite short-term volatility. This type of demand is crucial for an asset’s sustained growth and maturity.