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Crypto Selling Pressure

Definition

Crypto selling pressure describes the collective force exerted by market participants seeking to sell their digital assets, leading to price declines. This phenomenon occurs when the supply of a cryptocurrency available for sale exceeds the demand from buyers at current price levels. It can be triggered by various factors, including negative news, regulatory concerns, profit-taking, or a general shift in market sentiment towards risk aversion. Sustained selling pressure typically results in a downward trend in asset valuation as sellers accept lower prices to execute their trades.