Correction

A correction in the cryptocurrency market is a short-term price decline that follows a period of significant price gains. This adjustment is typically viewed as a natural and healthy market movement, helping to prevent bubbles and overvaluation. Corrections provide an opportunity for investors to buy at lower prices, and they can stabilize the market by bringing prices closer to their true value.

Corrections occur in various markets, including stocks, but are especially common in the volatile cryptocurrency space. These price drops can be triggered by profit-taking, news events, or broader market sentiment. While corrections can be nerve-wracking for short-term traders, long-term investors often see them as an opportunity to accumulate more assets at discounted prices.