Market Recalibration

Definition ∞ Market Recalibration describes a period where asset prices adjust to new information, altered supply-demand dynamics, or shifts in investor sentiment. This process often involves a re-evaluation of asset valuations, leading to price corrections or new equilibrium levels. It signifies a significant shift in market perception.
Context ∞ The current market often undergoes recalibration following major economic announcements or technological advancements within the digital asset space. A key discussion involves discerning whether a recalibration represents a temporary correction or a longer-term trend reversal. Observing this phenomenon provides insight into evolving market fundamentals and participant psychology.