Market Correction

Definition ∞ A ‘Market Correction’ is a decline in asset prices of 10% or more from their recent peak, typically occurring after a period of sustained price increases. This phenomenon is a natural part of market cycles, signaling a recalibration of asset valuations based on changing fundamentals or sentiment. Corrections are distinct from bear markets, which represent more prolonged and substantial declines. They serve to remove speculative excesses and can present opportunities for new capital deployment.
Context ∞ The cryptocurrency market has experienced periods of significant ‘Market Correction’ following periods of rapid ascent. These events often trigger discussions about investor psychology, the influence of macroeconomic factors, and the resilience of blockchain technology. Analysts are observing whether current market dynamics suggest a temporary adjustment or the onset of a more protracted downturn, with a focus on key support levels and indicators of trend reversal.