Definition ∞ Realized profit surge indicates a rapid increase in the amount of profit taken by investors who sell their digital assets at prices higher than their acquisition cost. This metric is derived from on-chain data, tracking the movement of coins that were previously held at a profit. A surge often suggests widespread profit-taking after a significant price rally.
Context ∞ A realized profit surge is often observed near market peaks in cryptocurrency cycles, signaling that investors are cashing out their gains. News reports frequently highlight these surges as a potential precursor to market corrections or consolidation periods. While healthy, an excessive surge can indicate a temporary exhaustion of buying momentum and a shift in supply dynamics.
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