Crypto Sell-Off

Definition ∞ A crypto sell-off signifies a period of significant, widespread selling of digital assets across the market. This action typically leads to a sharp decline in cryptocurrency prices. It often results from negative news, macroeconomic factors, or a general shift in investor sentiment. Such events are characterized by increased trading volume as market participants liquidate their holdings.
Context ∞ News channels regularly report on crypto sell-offs, analyzing their causes and potential effects on investor portfolios. These periods are frequently associated with broader financial market movements or specific regulatory announcements impacting the digital asset sector. Market analysts often discuss the resilience of various cryptocurrencies during these downturns and speculate on recovery timelines.