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Macroeconomic Uncertainty

Definition

Macroeconomic uncertainty refers to periods of unpredictable economic conditions, such as high inflation, interest rate volatility, or geopolitical instability, that influence global financial markets. These conditions significantly impact investor behavior and capital allocation across traditional and digital asset classes. In cryptocurrency, heightened macroeconomic uncertainty can lead to increased volatility as investors seek safe havens or liquidate risky assets. It often drives discussions about Bitcoin’s role as a hedge against traditional market instability.