Institutional profit taking occurs when large financial institutions sell portions of their digital asset holdings to realize gains after a period of price appreciation. This action involves converting assets back into fiat currency or other stable investments. It is a common strategy to secure returns and manage portfolio risk. Such selling can temporarily increase market supply.
Context
Reports of institutional profit taking are frequently discussed in crypto news, especially after significant market rallies. While it can exert temporary downward pressure on prices, it is often viewed as a normal market cycle event. Understanding this behavior helps differentiate healthy market corrections from more severe downturns, offering essential context for market analysis.
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