Definition ∞ Recent Buyer Losses is a metric used in on-chain analysis that quantifies the amount of cryptocurrency acquired by investors at higher prices who are now holding those assets at a loss. This indicates a cohort of market participants currently experiencing unrealized losses on their recent purchases. It often suggests short-term market weakness or investor capitulation.
Context ∞ News reports often reference “recent buyer losses” to assess the severity of market downturns and gauge potential selling pressure. A high volume of recent buyers holding losses can signal a lack of conviction or prompt further liquidations, contributing to downward price spirals. This metric helps analysts understand the psychological state of the market and identify potential support or resistance levels.