Market Health Check

Definition ∞ A market health check refers to a comprehensive analysis of various on-chain and off-chain indicators to assess the overall condition and stability of the cryptocurrency market. This diagnostic process evaluates metrics such as investor profitability, transaction volumes, network activity, and liquidity. It aims to determine whether the market is in a robust state, experiencing stress, or showing signs of recovery.
Context ∞ Cryptocurrency news frequently presents market health checks to provide readers with a holistic view of the current market environment. These analyses offer essential context for understanding broader trends, potential risks, and opportunities. By examining multiple data points, a market health check helps to clarify whether a digital asset market is experiencing sustained growth, a period of consolidation, or an impending downturn.