Realized Loss Contained

Definition ∞ Realized loss contained describes a market condition where the total amount of losses taken by investors selling digital assets remains within manageable or expected levels. This suggests that despite price declines, widespread panic selling is not occurring, and the market is absorbing losses without triggering a cascading effect. It implies a degree of resilience and a lack of extreme investor capitulation.
Context ∞ When cryptocurrency news reports that realized loss is contained, it offers a more optimistic outlook during periods of price correction. This indicates that while some investors are selling at a loss, the overall market structure is not breaking down, and a deeper capitulation might be averted. Such observations provide important context for assessing market stability and the potential for a quicker recovery from downturns.