Risk Asset Performance

Definition ∞ Risk asset performance refers to the price movements and returns generated by assets that are sensitive to overall market sentiment and economic growth. These assets, such as stocks or high-yield bonds, typically carry higher volatility and potential for greater returns or losses. Their value often declines during periods of economic contraction. They are sensitive to macroeconomic conditions.
Context ∞ Bitcoin and other cryptocurrencies are often categorized as risk assets, with their performance closely watched in relation to broader equity markets. News reports frequently analyze how shifts in macroeconomic conditions, like interest rate changes, affect investor appetite for digital assets. Observing risk asset performance helps gauge the general market outlook for cryptocurrencies. This relationship is a key analytical point.