Geopolitical Cooling

Definition ∞ Geopolitical Cooling refers to a reduction in international tensions or conflicts between nations. This period typically involves decreased political rhetoric, fewer trade disputes, and a general improvement in diplomatic relations. Geopolitical cooling can lead to greater global economic stability and increased investor confidence.
Context ∞ While not directly a crypto term, geopolitical cooling can indirectly influence digital asset markets by reducing overall market uncertainty. News of improved international relations might lead to increased risk appetite among investors, potentially benefiting assets like cryptocurrencies. Conversely, escalating tensions often result in a flight to perceived safe-haven assets, impacting the broader financial landscape.