Definition ∞ Net unrealized losses represent the aggregate difference between the current market value of digital assets held by investors and their acquisition cost, where the current value is lower. This metric indicates the total amount of paper losses across the market that have not yet been realized through a sale. It reflects the collective underwater position of market participants.
Context ∞ In crypto news, net unrealized losses are a significant on-chain indicator used to gauge market sentiment and potential selling pressure. A high level of unrealized losses can suggest investor capitulation or a reluctance to sell, potentially signaling a market bottom or a prolonged period of recovery.
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