Definition ∞ A Market Risk Indicator is a quantifiable metric or signal used to assess the potential for adverse price movements or volatility within the digital asset market. These indicators help investors and analysts gauge the overall health and stability of the market. They often incorporate data points such as trading volume, on-chain activity, or derivatives market metrics. Understanding these signals aids in evaluating potential downside exposure.
Context ∞ Crypto news frequently references various Market Risk Indicators to inform readers about prevailing market conditions and potential dangers. Discussions often center on how different metrics, such as funding rates or open interest, suggest increased or decreased systemic risk. Monitoring these indicators is essential for managing exposure and making informed decisions in the dynamic cryptocurrency environment.
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