Definition ∞ Investor loss territory describes a market condition where a significant portion of investors holding a particular digital asset are currently experiencing unrealized losses. This occurs when the current market price of the asset is below the average acquisition cost for a large segment of its holders. It suggests widespread underwater positions among market participants. This metric indicates investor sentiment and potential selling pressure.
Context ∞ On-chain analytics frequently utilize investor loss territory data to assess market capitulation events or potential turning points. A large percentage of investors in loss can signal a period of intense selling pressure or, conversely, a potential bottom if accumulation resumes. News reports often cite these figures to characterize market downturns or recovery phases.
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