Market Correction
Table of contents
A Market Correction is a temporary drop in asset prices—typically between 10% to 20%—that adjusts overvalued markets back to more realistic levels. It’s a natural part of healthy market cycles.
Why Corrections Matter
Corrections help prevent bubbles by cooling down overheated markets. For investors, they present opportunities to buy at lower prices or reassess risk exposure.
In the Crypto Context
In crypto, market corrections can be swift and sharp due to high volatility and speculation. They often follow major rallies and may trigger liquidations in leveraged positions.