The term "Market Downturn" refers to a period of decline or slowdown in financial markets, whether for stocks, cryptocurrencies, or other assets. It is a time when the value of assets typically falls due to negative economic factors such as a recession, tight monetary policies, geopolitical uncertainties, or a drop in demand.
A "market downturn" can last a few days, a few weeks, or even longer. During this period, investors often see their portfolios lose value, and many seek to limit risk by selling their assets or taking refuge in safer investments. For traders, it can also offer opportunities to buy assets at low prices, if a market reversal is anticipated in the medium to long term.