A market correction, also known as price correction, refers to the short-term drop in the value of digital assets. As the cryptocurrency market is subjected to volatility, price correction happens all the time. In 2021, between January to October, the cryptocurrency market experienced four corrections, followed by a market crash. As an investor, it is important to familiarize yourself with the cryptocurrency space and what’s going on in the market.
A short-term drop of between 10-20% from the current highest value of the crypto is termed a correction. There’s no certainty whether the correction would have a further impact on its prices. But mostly, price corrections pave the way towards recovery in the crypto value. When compared, corrections are less severe than market crashes.