Definition ∞ Historical returns represent the past performance of an investment, such as a cryptocurrency or digital asset, over a specific period. These figures are calculated based on past price movements and any distributions or yields generated. While they offer data points for analysis, historical returns do not guarantee future performance due to the inherent volatility and speculative nature of digital asset markets. Investors often examine these metrics to assess an asset’s past growth trajectory.
Context ∞ The state of historical returns analysis is a regular feature in cryptocurrency news, informing investor sentiment and market predictions. Reports frequently cite past price surges or corrections to contextualize current market conditions. A key discussion involves the reliability of historical data in a rapidly evolving asset class and its limited predictive power for future price action.
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