#CryptoClarityAct ---
A market correction is a term used in financial markets when prices decline by typically 10% to 20% from their most recent peak. This correction is considered normal and healthy in the course of markets, as it allows for the reevaluation of assets and the elimination of price bubbles caused by excessive optimism or over-speculation.
Corrections often occur due to changes in economic factors, such as interest rate hikes or the release of negative financial data, or simply as a result of profit-taking by investors. Although corrections may cause concern in the short term, they often represent good opportunities for investors to buy high-quality assets at lower prices.
Understanding market corrections helps investors like a sword to distinguish between temporary declines and real reversals in the overall market trend, which enhances rational decision-making and reduces the likelihood of selling under psychological pressure.
