NFCI

Definition ∞ NFCI stands for the National Financial Conditions Index, a weekly index published by the Federal Reserve Bank of Chicago. It measures the stress in US financial markets across money markets, debt and equity markets, and the banking system. A positive NFCI value indicates tighter financial conditions than average, while a negative value indicates looser conditions. This index provides a comprehensive view of financial system health.
Context ∞ Cryptocurrency news often references the NFCI when discussing the broader financial environment’s impact on digital asset valuations. A rising NFCI, indicating tighter conditions, can signal reduced liquidity and increased risk aversion, potentially affecting crypto prices. Understanding the NFCI helps interpret macroeconomic reports and their influence on investment flows into digital assets.