The Investor Loss Ratio quantifies the proportion of investors who have realized losses on their digital asset holdings relative to those who have realized gains over a specific period. This metric provides insight into the overall profitability and sentiment of the investor base. A high ratio indicates widespread unrealized or realized losses. It helps assess market health.
Context
The investor loss ratio is a valuable on-chain metric frequently cited in crypto market analysis to assess the pain threshold of market participants. Extreme values can signal market bottoms or periods of significant stress, offering context for understanding market corrections and potential rebound scenarios. This ratio provides a direct measure of collective investor experience.
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