Definition ∞ Structural breakdown in financial markets, particularly digital asset markets, signifies a fundamental and sustained shift in underlying market dynamics or asset valuation principles. This event indicates a significant departure from previous support levels or trend patterns, often driven by a change in fundamental factors or broad market sentiment. It suggests a lasting alteration in market behavior rather than a temporary correction.
Context ∞ Identifying a structural breakdown is crucial for investors to re-evaluate their investment theses and adjust risk exposure in cryptocurrency markets. Such events can be triggered by major regulatory changes, technological obsolescence, or a complete loss of investor confidence. Understanding the difference between a market correction and a structural breakdown is essential for long-term capital preservation.
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