Realized Loss Volume refers to the total aggregate value of digital assets that have been sold at a price lower than their acquisition cost, resulting in a financial loss for the seller. This metric is derived from on-chain data, tracking when coins move and comparing their current value to their previous transfer price. High realized loss volume often indicates periods of market capitulation and investor despair. It reflects the total amount of value destroyed from selling assets at a loss.
Context
Crypto news and on-chain analysis often highlight spikes in Realized Loss Volume as a signal of market bottoms or periods of extreme fear. Such events can indicate that weak hands are exiting the market, potentially setting the stage for a recovery. This metric provides insight into the severity of market downturns and the psychological state of investors.
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