Definition ∞ Selling into weakness describes the market behavior of liquidating assets during a period of declining prices, often exacerbating the downward trend. This action typically occurs when investors panic or lack conviction, choosing to sell their holdings even as prices fall, rather than holding or buying more. It contributes to increased supply and reduced demand, pushing prices further down. This behavior can accelerate market corrections or bear markets.
Context ∞ Selling into weakness is a common psychological phenomenon observed and discussed during cryptocurrency market downturns. News reports often analyze this behavior as a sign of retail investor fear or lack of experience. The discussion often contrasts this action with the strategies of long-term holders or institutional investors who might accumulate during such periods.
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