"While headlines often highlight the significant unrealized losses in the cryptocurrency market, it's important to recognize that these figures do not necessarily represent the actual risk associated with holding digital assets. Unrealized losses indicate a temporary decline in value on paper, but they do not account for the potential for recovery or the long-term investments made by holders who might choose to wait for the market to rebound. Additionally, the volatility of cryptocurrencies means that values can fluctuate dramatically over short periods, making it crucial to distinguish between short-term market sentiment and the fundamental value of the assets in question."
source: https://blocknews.com/crypto-unrealized-losses-make-headlines-but-they-rarely-reflect-real-risk/