Definition ∞ Supply pressure increase is a market condition where the amount of a digital asset available for sale at current price levels grows, leading to an elevated likelihood of downward price movement. This increase in available supply can result from various factors, including new token unlocks, large investor distributions, or increased mining activity. It indicates a greater willingness among holders to sell their assets. This situation can absorb buying demand and suppress price growth.
Context ∞ Cryptocurrency news frequently reports on supply pressure increases when explaining price stagnation or declines. Upcoming token unlocks or significant transfers to exchanges are often cited as contributors to this pressure. Understanding this dynamic is crucial for anticipating periods of market weakness.
Blockchain Knowledge
Cryptocurrency Foundation
Cryptospace Newsfeed
