Macro Panic

Definition ∞ Macro Panic refers to a widespread fear and selling pressure across global financial markets, often triggered by significant macroeconomic events such as recessions, geopolitical instability, or systemic financial crises. This collective response leads to investors divesting from riskier assets, including cryptocurrencies, in favor of perceived safe havens. It reflects a broad loss of confidence.
Context ∞ Macro panic events frequently test the resilience of digital asset markets, demonstrating their correlation with traditional finance during periods of global economic stress. Analyzing these episodes helps to understand cryptocurrency’s role as a risk asset versus a potential hedge.