Deep Sell Off

Definition ∞ A deep sell off describes a rapid and substantial decline in asset prices across a market or specific asset. This event is characterized by heavy selling pressure, often driven by panic, negative news, or significant macroeconomic events. It results in a considerable percentage drop in value over a short period, leading to substantial losses for many holders. Such market corrections can test investor resolve and alter market sentiment for an extended duration.
Context ∞ Crypto news frequently reports on deep sell offs, analyzing their causes and potential market consequences. Discussions often revolve around whether such events represent a buying opportunity or a signal of further downside. The immediate context for understanding new information during a deep sell off involves assessing the underlying reasons for the price drop and the broader market sentiment.