Definition ∞ Retail investor selling describes the act of individual, non-professional investors liquidating their digital asset holdings. This behavior often occurs during periods of market downturns, heightened uncertainty, or when investors decide to realize profits or cut losses. Significant retail selling can contribute to downward price pressure and exacerbate market volatility. It reflects the collective sentiment and risk appetite of a large segment of the market.
Context ∞ News reports frequently analyze retail investor selling trends as an indicator of broader market sentiment and potential capitulation events. On-chain data metrics are often utilized to track these selling patterns and distinguish them from institutional movements. Understanding retail investor actions is crucial for assessing market stability and predicting price floors.
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