Risk Assets

Definition ∞ Risk assets are financial instruments or investments that carry a higher probability of capital loss compared to safer alternatives. In the digital asset space, this often includes cryptocurrencies, speculative tokens, and volatile digital collectibles. Their value is typically more sensitive to market sentiment and economic shifts.
Context ∞ The classification and behavior of risk assets are frequently discussed in relation to broader macroeconomic trends and investor sentiment shifts. During periods of economic uncertainty, these assets may experience significant price depreciation as capital moves towards more stable investments. Analysis of risk assets often involves assessing their correlation with traditional markets and their susceptibility to systemic shocks.