Risk-Off Macro

Definition ∞ Risk-Off Macro describes a global economic environment where investors reduce their exposure to riskier assets and move capital into safer, more stable investments. This sentiment is typically driven by concerns over economic downturns, geopolitical instability, or tightening monetary policies. During a risk-off period, assets perceived as volatile, including many cryptocurrencies, often experience significant price declines. It reflects a cautious approach to global financial markets.
Context ∞ Crypto news frequently discusses Risk-Off Macro environments, analyzing their impact on digital asset valuations and investor behavior. Bitcoin and other cryptocurrencies, while sometimes viewed as hedges, often behave as risk assets during these periods, experiencing price correlation with traditional markets. Understanding risk-off sentiment is crucial for predicting market movements and adjusting investment strategies within the broader financial landscape.