Definition ∞ A macro shakeout signifies a broad market downturn driven by large-scale economic or geopolitical factors. This type of market correction affects multiple asset classes, including digital assets, as investors react to systemic risks or significant shifts in global financial conditions. It often results from widespread economic uncertainty, interest rate hikes, or major geopolitical events. A macro shakeout indicates a period of significant risk aversion and capital withdrawal across financial markets.
Context ∞ Macro shakeouts are a critical topic in cryptocurrency news, as digital asset markets are increasingly influenced by global economic conditions. Analysts frequently discuss how central bank policies, inflation data, or international conflicts contribute to these broader market movements. The ability of cryptocurrencies to act as a hedge against traditional financial instability is a key debate during such periods.