This is a market condition when investor sentiment is optimistic. At these times, they are will to take on more risk. The sentiment derives from the outlook on the economy, geopolitics, and different industries.
During risk on periods, trades are entered with stocks and other high yielding financial instruments. Cryptocurrency is considered in this category.
We also see low grade bonds and corporate debt purchases during these times. The defensive assets are sold.
The aim is to maximize return during these moves.