Definition ∞ “Spot bags” refers to holdings of an asset purchased on the spot market, typically at a higher price, which have subsequently decreased significantly in value. These assets are often held by investors who bought near a market peak and are now experiencing substantial unrealized losses. The term implies a position that is underwater and held with the hope of future recovery. It represents capital locked in depreciated assets.
Context ∞ The concept of “spot bags” is frequently discussed in cryptocurrency market analysis, particularly after periods of market euphoria followed by sharp corrections. News articles might refer to the accumulation of spot bags by retail investors as an indicator of market tops or overexuberance. The presence of many such holdings can create overhead resistance for future price rallies, as investors might sell once their positions approach breakeven.
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