Definition ∞ Investor selling pressure refers to the collective force exerted by market participants who are actively liquidating their cryptocurrency holdings. This pressure manifests as a higher volume of sell orders relative to buy orders, which typically drives asset prices downward. It can be triggered by various factors, including profit-taking, market uncertainty, negative news, or broader economic concerns. Sustained selling pressure often indicates a shift in market sentiment from optimism to caution.
Context ∞ Investor selling pressure is a critical factor analyzed in crypto market news to explain price corrections or sustained downtrends. On-chain metrics, such as exchange inflows and long-term holder behavior, are frequently examined to assess the intensity of this pressure. The current discussion often focuses on identifying the catalysts for significant selling events and their potential impact on market stability and recovery trajectories.