Definition ∞ An unrealized gain represents the theoretical profit an investor holds on an asset that has increased in value but has not yet been sold. This gain is not considered actual profit until the asset is liquidated. In the context of digital assets, it refers to the appreciation in value of cryptocurrencies or tokens held in a wallet or exchange account. Unrealized gains are subject to market fluctuations until a sale occurs.
Context ∞ Unrealized gains are a common discussion point in volatile cryptocurrency markets, as they can quickly become unrealized losses if prices decline. News often highlights large unrealized gains during bull markets, which can influence investor sentiment and market exuberance. The tax implications of unrealized gains, particularly regarding potential wealth taxes or capital gains calculations upon realization, remain a subject of ongoing debate and regulatory focus.
Blockchain Knowledge
Cryptocurrency Foundation
Cryptospace Newsfeed
