Smart Money Selling

Definition ∞ Smart money selling refers to the strategic divestment of assets by experienced and well-informed investors, often institutional players or large holders. This selling activity is typically based on deep market analysis and proprietary information, anticipating future price declines. It often occurs subtly, before widespread retail selling.
Context ∞ In cryptocurrency markets, smart money selling can be identified through on-chain analytics, such as large transfers of tokens from long-term holding wallets to exchanges. This activity can precede significant market corrections and serves as a warning signal for other market participants. Crypto news often monitors these movements to provide insights into potential market shifts and investor sentiment.