A market correction is a decline from a recent peak in an asset, index or wider market. The term often describes a retreat after earlier gains, but it does not prove that prices were previously wrong or have now reached fair value. In crypto discussions, the size and duration implied by correction can vary considerably.
Measuring the pullback
A decline of roughly 10% from a recent high is a familiar benchmark in traditional market commentary. It is not a universal crypto rule: highly volatile tokens can move that much quickly, and speakers may apply the word more loosely.
For example, a market index falling from 1,000 to 880 has declined 12% from its peak. Returning from 880 to 1,000 requires a gain of about 13.64%, because the recovery starts from a lower base.
Correction or something deeper
Profit-taking, changing economic expectations or weaker demand may contribute, but the label alone identifies no cause. A correction may stabilize or develop into a longer decline. Calling it temporary while it is unfolding is an interpretation, not a known endpoint. It therefore cannot establish that buying the decline will be profitable.