Part 5/14:
These are external, large-scale economic developments that affect liquidity and investor sentiment broadly—for example, wartime escalations, inflation reports, or changes in monetary policy. When macro conditions turn bearish—like when central banks signal higher interest rates or when geopolitical tensions rise—liquidity dries up, and risk assets, including crypto, decline.
For example, if tensions in Ukraine or conflicts in the Middle East escalate, or if economic data suggest a slowdown, crypto markets tend to fall because investors become risk-averse. These broad macro triggers are often reflected in stock markets as well; if stocks drop, it's often due to macroeconomic concerns rather than crypto-specific issues.
Key Indicators to Watch:
- Stock market performance