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.
Context ∞ Crypto news frequently reports on rapid sell-offs, often attempting to identify the catalysts behind sudden market declines for assets like Bitcoin or other altcoins. These reports provide immediate context for understanding sharp price drops and the subsequent market reactions, including potential liquidations or shifts in market sentiment. Observing rapid sell-offs helps investors assess market fragility and the speed at which sentiment can change in volatile digital asset markets.