Selling Stops Only in Panic — Hedge Funds First, ETFs Later

I state this as a fact: below a certain price level, unless there is broad panic or a market meltdown, people typically won't sell. I say this because I understand how the crypto market structure works. Selling pressure usually comes from hedge funds first, not ETFs. ETFs generally only liquidate when the market price moves below the client's entry price.

I stick to this view because market participants act according to incentives and redemption mechanics. In normal corrections without systemic panic, retail holders and many institutional investors prefer to hold, while hedge funds are the active sellers. ETF vehicles, due to their design, tend to sell only when client positions are underwater relative to their entry points.