Definition ∞ Market jitters describe a state of anxiety or nervousness among investors that causes increased volatility and uncertainty in financial markets. This sentiment often arises from economic instability, geopolitical events, or unexpected news. It typically leads to cautious trading behavior and a tendency for investors to reduce risk exposure. Such conditions can precede significant market movements.
Context ∞ In the cryptocurrency landscape, market jitters are a common occurrence due to its inherent volatility and sensitivity to external factors. News often reports on how regulatory announcements, major security breaches, or macroeconomic data can cause sudden price swings and heightened investor apprehension. Understanding these periods of uncertainty is essential for digital asset holders and traders navigating the rapidly changing market environment.