Macro Risk

Definition ∞ Macro risk in the context of digital assets refers to broad economic, political, or systemic factors that can adversely affect the entire cryptocurrency market or a significant portion of it. These risks include inflation, interest rate changes, geopolitical instability, or widespread regulatory crackdowns. They are external forces largely beyond the control of individual crypto projects.
Context ∞ News reports frequently discuss macro risk when analyzing market downturns, investor sentiment shifts, and the correlation between traditional financial markets and digital asset valuations. Central bank policies and global economic data are often cited as drivers of macro risk for crypto. Understanding these broader economic forces is crucial for assessing overall market conditions.