Definition ∞ A deep market flush refers to a rapid and significant decline in asset prices, often accompanied by widespread selling. This event typically involves a sudden liquidation of positions across the market, driven by panic selling, margin calls, or automated stop-loss triggers. It results in a sharp decrease in market capitalization and can lead to capitulation among less resilient holders. Such a flush frequently clears out excess leverage and weak market participants, potentially setting the stage for a subsequent recovery.
Context ∞ In volatile digital asset markets, news of a deep market flush often signals extreme bearish sentiment and heightened risk. These events are closely watched by analysts for signs of market cleansing and potential long-term value opportunities. Understanding the dynamics of a deep market flush helps in interpreting market behavior during periods of severe stress and assessing the resilience of various digital assets and protocols.
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