Institutional Selling

Definition ∞ Institutional selling denotes the divestment of digital assets by large financial entities such as hedge funds or corporate treasuries. This activity can result from changes in market outlook, risk management strategies, or portfolio rebalancing. Significant institutional selling can exert downward pressure on asset prices due to the large volumes involved. It often signals a shift in broader market sentiment.
Context ∞ The state of institutional selling is a closely watched indicator in the cryptocurrency market, as it can precede or coincide with significant price corrections. Key discussions often focus on the underlying reasons for such sales, including macroeconomic factors or specific protocol concerns. A critical future development involves how increasing institutional participation will affect market liquidity and the overall impact of their trading activities.