Definition ∞ Macro sensitivity describes the degree to which digital asset markets react to broader economic conditions, global financial policies, and geopolitical events. This metric indicates how closely cryptocurrency prices correlate with traditional asset classes or respond to macroeconomic indicators like inflation rates or interest rate changes. An increasing macro sensitivity suggests a maturing asset class that is more integrated into the global financial system. It influences investment strategies.
Context ∞ The discussion around macro sensitivity frequently centers on the evolving relationship between digital assets and traditional financial markets, especially during periods of economic uncertainty. A key debate involves whether cryptocurrencies can still serve as a hedge against inflation or act as a separate asset class independent of conventional finance. Monitoring macro sensitivity is crucial for understanding the external factors influencing digital asset valuations and market trends.
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