Price Crash

Definition ∞ A price crash denotes a sudden, sharp, and significant decline in the market value of a digital asset or the broader cryptocurrency market. This event is typically driven by intense selling pressure, often exacerbated by fear, negative news, or large liquidation events. Price crashes can result in substantial losses for investors and signal periods of market instability. These are common occurrences in volatile markets.
Context ∞ Crypto news frequently reports on price crashes, analyzing their causes, such as macroeconomic factors, regulatory actions, or major protocol exploits. The discussion often centers on market sentiment, investor behavior during periods of extreme volatility, and the resilience of various digital assets. Market analysts monitor indicators to anticipate potential future price declines, helping investors manage risk.