Definition ∞ Short term turbulence refers to temporary periods of increased volatility and price fluctuations in financial markets. These periods are characterized by rapid and unpredictable price movements, often driven by specific news events, market sentiment shifts, or technical trading factors. Such turbulence typically does not indicate a fundamental change in long-term market direction but rather a transient phase of uncertainty. Investors often view these as opportunities or risks depending on their trading strategies.
Context ∞ Crypto news frequently reports on short term turbulence in digital asset markets, often attributing it to factors like sudden regulatory announcements, large liquidations, or speculative trading activity. These reports analyze the immediate impact on asset prices and trading volumes. Understanding short term turbulence helps market participants differentiate between temporary market noise and more significant, lasting trends.