Definition ∞ A Historic Low Ratio denotes a data point where a specific financial or on-chain metric, expressed as a ratio, reaches its lowest recorded value over a defined historical timeframe. This occurrence indicates an extreme condition for the measured relationship between two variables. It represents an unprecedented level of relative undervaluation or market imbalance.
Context ∞ Observing a historic low ratio often signals a potential turning point or a period of significant market stress and opportunity. Analysts assess such ratios to determine if current market conditions represent an attractive valuation for long-term accumulation or if deeper structural issues warrant caution. These extreme readings frequently draw considerable market attention.