Structural Correction

Definition ∞ A structural correction is a significant and often prolonged downward adjustment in the price of a digital asset or an entire market, driven by fundamental shifts in underlying economic conditions, regulatory environments, or technological advancements. This type of correction is more substantial than a typical retracement and can reset market valuations. It reflects a re-evaluation of asset worth.
Context ∞ News often discusses structural corrections to explain major market downturns in the crypto space, attributing them to factors like macroeconomic shifts or significant regulatory changes. Understanding these corrections helps investors comprehend deeper market movements and long-term valuation adjustments.