Definition ∞ Institutional Selling Pressure describes the significant downward force on asset prices resulting from large-scale divestment by major financial entities. This occurs when institutional investors liquidate substantial portions of their holdings, often in response to market conditions, regulatory changes, or portfolio rebalancing. Such selling can lead to rapid price declines due to the sheer volume of assets entering the market. It indicates a reduction in institutional confidence or a strategic exit.
Context ∞ The presence of institutional selling pressure in digital asset markets is a key factor for market observers to consider when assessing price stability. Discussions often focus on identifying the triggers for such large-scale liquidations and their potential impact on market liquidity. Monitoring institutional activity provides important context for understanding market corrections and shifts in investment sentiment.
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