Definition ∞ Market cycle correction refers to a temporary but significant decline in the price of a digital asset or the broader cryptocurrency market, occurring as a natural phase within a larger market cycle. This adjustment often follows periods of rapid price appreciation and serves to reset valuations and remove excess speculation. It is distinct from a full market reversal.
Context ∞ News frequently reports on market cycle corrections, analyzing their causes and potential duration. These corrections are often viewed as healthy market adjustments that can create opportunities for new entrants. Understanding market cycle corrections is essential for contextualizing price movements and anticipating future market phases.