Market Transition

Definition ∞ Market transition refers to a significant shift in the prevailing characteristics, dynamics, or sentiment of a digital asset market. This can involve a change from a bull market to a bear market, a shift in dominant asset classes, or a fundamental alteration in investor behavior. Such transitions often mark periods of substantial revaluation and strategic repositioning. They reflect evolving external factors and internal market forces.
Context ∞ Cryptocurrency news frequently reports on signs of market transition, such as sustained price movements, changes in trading volume, or shifts in institutional participation. Analysts often debate whether current conditions represent a temporary fluctuation or a more enduring market change. Understanding these transitions is vital for investors and developers navigating the digital asset landscape.