Risk-On and Risk-Off describe the market sentiment towards investments, particularly in high-volatility assets like cryptocurrencies.When the market sentiment is Risk-On, investors are more willing to take on higher risks. This usually happens in bullish conditions when prices are rising. In this phase, more capital flows into assets such as cryptocurrencies because investors feel optimistic about potential returns. Increased buying can lead to higher prices and greater speculation.Conversely, during Risk-Off phases, investors become more cautious and tend to sell off riskier assets. This behavior often occurs in response to negative news, economic uncertainty, or market corrections. As a result, capital moves away from cryptocurrencies and other high-risk investments towards safer options like cash or government bonds.Understanding these terms helps gauge market behavior and sentiment, allowing investors to make more informed decisions based on prevailing trends.