Realized Loss Volume

Definition ∞ 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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→Fear Index Peak

→Structural Demand Floor

→Weak Hands Flushed

Extreme Loss Volume Confirms Short-Term Investor Capitulation Is Complete

Panic selling by new investors has peaked, cleansing the market of weak hands and signaling the structural bottom is near.

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→Derivatives Adjustment

→Cyclical Recovery Signal

→Spent Output Profit

Extreme Loss Selling Confirms Bitcoin Short-Term Holder Capitulation Phase

Recent Bitcoin buyers are selling at a loss, a key signal that the market's "weak hands" are exiting, setting the stage for a recovery.

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→Top-Heavy Market Structure

→Reactive Market Segment

→On-Chain Support Level

New Buyers Capitulate Confirming $98,000 as Critical Market Support

Intense short-term seller capitulation near $98K signals a major support test, but market confidence requires reclaiming $111.9K.

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→Selling Pressure Saturation

→Short-Term Holder Exhaustion

→MVRV Opportunity Zone

Widespread Investor Panic Selling Signals the Market Bottom Is Near

Massive loss realization confirms investor capitulation, pushing the market's profitability metric into a historical accumulation zone.