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Market Downturn

Definition

A market downturn signifies a sustained period of declining asset prices across a broad segment of the financial market. This phase is typically characterized by negative investor sentiment, reduced trading volumes, and a general contraction in asset valuations. In the cryptocurrency domain, market downturns can be triggered by a confluence of factors including macroeconomic shifts, regulatory crackdowns, significant security breaches, or a loss of confidence in specific digital assets or projects. Such periods often test the resilience of market participants and the underlying technology.