Short-Term Holder Realized Cap

Definition ∞ Short-Term Holder Realized Cap is an on-chain metric that calculates the aggregate value of all digital assets held by short-term investors, priced at their acquisition cost. Short-term holders are typically defined as those who have held an asset for less than a specific duration, such as 155 days. This metric provides insight into the collective cost basis of recent market participants. It helps assess potential selling pressure from newer entrants.
Context ∞ News and market analysis frequently refer to the Short-Term Holder Realized Cap to understand the behavior of newer investors in the cryptocurrency market. When the market price approaches this cap, it often indicates a potential area of increased volatility as these holders may break even or incur losses. Monitoring this metric helps gauge the psychological and financial thresholds of a significant market segment.