Definition ∞ Unrealized gains refer to the theoretical profit an investor holds from an asset that has increased in value but has not yet been sold. These gains exist only on paper and are subject to market fluctuations until the asset is liquidated. They represent the potential profit that could be realized if the asset were sold at its current market price. This concept is fundamental to understanding investment portfolio performance before a sale occurs.
Context ∞ Unrealized gains are a frequently discussed topic in cryptocurrency market news, particularly during periods of significant price appreciation or volatility. The situation often involves investors holding assets that have seen substantial price increases but have not yet converted them to fiat currency or other assets. A key debate centers on the psychological impact of large unrealized gains on investor behavior and decisions regarding profit taking. Future market analyses will continue to track these gains as an indicator of overall market sentiment and potential selling pressure.
Blockchain Knowledge
Cryptocurrency Foundation
Cryptospace Newsfeed
