Definition ∞ A market regime shift refers to a fundamental change in the prevailing market conditions, often transitioning from a bull market to a bear market, or vice versa. This alteration involves a sustained change in price behavior, investor sentiment, and underlying economic factors influencing digital assets. Such shifts are significant and typically indicate a new long-term trend, requiring investors to adjust their strategies.
Context ∞ Cryptocurrency news frequently discusses market regime shifts to explain significant and lasting changes in market direction. These shifts are often driven by macroeconomic factors, regulatory developments, or major technological advancements within the blockchain space. Understanding a market regime shift provides crucial context for interpreting long-term price movements and for assessing the durability of current trends in digital asset valuations.