Market Resilience

Definition ∞ Market Resilience refers to the capacity of a financial market to withstand and recover from shocks, such as price volatility, liquidity crises, or regulatory changes. In the context of digital assets, it signifies the ability of the cryptocurrency market to absorb negative events without collapsing or experiencing prolonged downturns. A resilient market demonstrates robust underlying infrastructure and diverse participation. It indicates the system’s capacity to return to stable functioning post-disruption. Context ∞ The concept of Market Resilience is frequently debated following significant price corrections or security incidents within the cryptocurrency ecosystem. News coverage often assesses whether the market’s ability to recover from past events indicates a maturing asset class or if underlying fragilities persist. Analyzing the speed and completeness of recovery after adverse events provides insight into the stability and maturity of the digital asset market infrastructure and investor confidence.