Realized loss dominance describes a market condition where the total value of losses taken by investors selling assets exceeds the total value of gains. This metric indicates a prevailing negative sentiment and widespread capitulation among market participants. It often signals a bottoming process in an asset’s price cycle. Such dominance reflects significant selling pressure.
Context
Realized loss dominance is a key on-chain metric frequently analyzed in cryptocurrency news to assess market sentiment and potential turning points. Current discussions often reference its historical correlation with market bottoms in Bitcoin and other major digital assets. Observing this trend helps analysts identify periods of investor despair before a potential recovery.
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