Definition ∞ A short-term dip is a temporary, brief decline in the market price of a digital asset. This price reduction is typically transient and does not indicate a fundamental shift in the asset’s long-term value or market conditions. Such dips are often caused by minor market corrections, profit-taking, or short-lived negative news cycles. Traders and investors often view these periods as potential buying opportunities, expecting a quick recovery.
Context ∞ Crypto news frequently reports on short-term dips in asset prices, often attributing them to market volatility or specific events. Discussions center on whether a dip represents a healthy market correction or a precursor to a more significant downturn. Market participants often monitor trading volumes and sentiment during these periods to gauge potential recovery strength.
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