Definition ∞ Macro liquidity pertains to the overall availability of cash and credit within the global financial system. It reflects the ease with which assets can be bought and sold without significantly affecting their prices, influencing investment flows across various asset classes. Central bank policies, such as quantitative easing or tightening, play a substantial role in determining the prevailing levels of macro liquidity. High liquidity often supports asset prices, while low liquidity can lead to market instability.
Context ∞ The current state of macro liquidity is a primary driver of sentiment and capital allocation in digital asset markets. A key discussion point involves the correlation between global liquidity conditions and cryptocurrency valuations, particularly during periods of economic uncertainty. Future developments will focus on central bank responses to inflation and economic growth, which will continue to dictate the availability of capital for speculative assets and broader market stability.
Blockchain Knowledge
Cryptocurrency Foundation
Cryptospace Newsfeed
