Selling at a Loss describes the act of divesting an asset for a price lower than its original purchase price. This action results in a negative financial return for the seller. In digital asset markets, participants may sell at a loss due to urgent liquidity needs, a loss of confidence in the asset’s future prospects, or to mitigate further potential depreciation. This behavior often contributes to downward price momentum.
Context
Crypto news frequently discusses instances of Selling at a Loss, especially during bear markets or after significant price corrections. Onchain analysis often identifies cohorts of investors, such as short-term holders, who are actively selling at a loss, providing insight into market sentiment and capitulation events. The prevalence of selling at a loss can indicate a period of market distress or a cleansing phase before a potential recovery.
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