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Rapid Sell-Off

Definition

A rapid sell-off describes a sudden and intense period of selling pressure in a market, leading to a swift and significant decline in asset prices over a short timeframe. This event is typically triggered by negative news, macroeconomic concerns, or a sudden shift in investor sentiment, causing market participants to quickly divest their holdings. It often results in panic selling and can exacerbate price drops due to a lack of buying support. Such events can be dramatic and short-lived.