Market Adjustment

Definition ∞ Market adjustment describes the process where asset prices or market conditions change to reflect new information, supply-demand shifts, or altered investor sentiment. These adjustments can be gradual or rapid, leading to price corrections or new market equilibria. It is a natural process in financial markets that helps realign asset valuations. Such shifts are a regular occurrence in dynamic trading environments.
Context ∞ In crypto news, market adjustments are a recurring theme, often following significant events like regulatory announcements, technological upgrades, or major liquidations. These adjustments can manifest as price corrections after periods of rapid growth or as rallies during downturns. Understanding the drivers of market adjustment is crucial for interpreting short-term and long-term trends in digital asset valuations. Analysts frequently discuss whether a market is undergoing a healthy adjustment or facing a more sustained trend reversal.