Definition ∞ High Conviction Selling refers to the disposal of assets by investors who possess strong belief that the asset’s price will decline significantly or that their fundamental thesis for holding the asset has deteriorated. This type of selling is characterized by a firm decision to exit positions, often regardless of minor price fluctuations, driven by deep analysis or a definitive change in market outlook. It can indicate a significant shift in institutional or experienced investor sentiment.
Context ∞ Instances of high conviction selling in the cryptocurrency market often emerge during periods of macroeconomic uncertainty or after major regulatory announcements. A key discussion involves distinguishing this type of selling from panic selling, as it typically reflects a more reasoned and strategic decision. Future market movements are often influenced by whether such selling pressure subsides or accelerates, indicating broader sentiment shifts.
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