Definition ∞ Unrealized loss contained describes a situation where a digital asset’s price has declined below its acquisition cost, but the holder has not yet sold it. This term refers to the paper loss experienced by an investor when the current market value of their holdings is less than the price at which they purchased them. The loss remains “unrealized” because the asset has not been sold, meaning the loss is not yet permanent. When this condition is “contained,” it implies that while losses exist, they are not severe enough to trigger widespread panic selling or capitulation. It often indicates a period of market consolidation or accumulation.
Context ∞ Crypto analysts often discuss unrealized loss contained when assessing market bottoms or periods of strong holder conviction. News reports might highlight on-chain data showing a significant portion of the supply held at an unrealized loss, but with minimal selling activity. This suggests that investors are choosing to hold through the downturn, indicating a belief in future price recovery. This metric helps gauge the resilience of the holder base during market corrections.
Blockchain Knowledge
Cryptocurrency Foundation
Cryptospace Newsfeed
