Market Reassessment

Definition ∞ Market reassessment describes a period where investors collectively re-evaluate the intrinsic value, risk, and future prospects of assets or an entire market segment. This process often occurs in response to new information, economic shifts, or regulatory developments. It can lead to significant price adjustments as participants revise their valuations and investment strategies. A market reassessment reflects a shift in collective perception.
Context ∞ In cryptocurrency markets, a market reassessment might follow a major regulatory announcement, a technological upgrade, or a macroeconomic event. News often reports on such periods, detailing how investor sentiment and capital flows react to updated information. This re-evaluation can result in a shift of funds from one asset class to another or a general recalibration of risk exposure.