Macroeconomic indicators and geopolitical events that could influence the crypto market
The crypto market has been experiencing fluctuations for a years now which make the crypto space look more tough for investors because the market is not stable. Crypto investment is a volatile market that we investors and traders have to be careful with decision making and i think that is the reason sometimes it always advisable for crypto investors to make a good investment decision before jumping into the market.
You can't rush into crypto market without regretting it, so let those who have the feeling of FOMO to be aware not all opportunities or project are reliable, in the process of you dont want to miss out, you can endup making a wrong investment decision so it better sometimes you embrace JOMO in a FOMO obsessed world. I believe cryptocurrency is evolving and the more it evolving more difference challenges will arise, more factor that will profound influence on it value, market trends and performance.
Now that everyone talking about Bitcoin halving coming in next few month, they waiting for the massive bull run right? Yes we want to be bullish but there are key factor that we don't navigate but they play a crucial role in shaping the crypto market. We don't consider the impact of macroeconomic indicators and geopolitical events in crypto market, meanwhile they play vital role in crypto performance, shape and overall market trends. Obviously crypto can be impacted from global economic recession to tension between nations, they have power in shaping the cryptocurrencies market
Macroeconomic indicators Influence on crypto
Macroeconomic indicators refer to data points that provide insights into the overall health and performance of an economy. They involved the financial crisis we going through, such as inflation rates, high interest rates, economy growth, government policies and rates of unemployment, all of these can contribute and influence the crypto market. When all these factors are low, it can easily impact the growth of cryptocurrency, for instance,if there is low interest, strong GDP, low unemployment there will be stable economy that will attract investors confidence in investing in cryptocurrencies, but if all these are negative it will affect the growth and investors will likely looking for alternatives investment opportunities aside cryptocurrency.
Geopolitical events influence on crypto
This also play a role in shaping the way we see crypto market, those are the event like trade wars which seems happening right now in the world. The dedollarization of a thing is part of trade war that can influence crypto market, the United States and China create tension in investing in cryptocurrency such as Bitcoin and that has cause low in Bitcoin demand which cause the ups and downs in ctypto market recently, obviously the market declined when china go against Coin Offerings and United freezing crypto exchanges all these take impact on the cryptocurrencies market. Also events like political or government instability bring downs to crypto market and that is exactly what going in European countries, US with crypto regulations. The geopolitical events like such can impact the cryptocurrencies regulatory, with governments implementing policies that either support or against the growth of cryptocurrencies.
The impact of geopolitical and microeconomics indicators can not be look down, the two factor contributes to the crypto market both the falls and the rise. So we have to understand the two are the main cause of the drawback in cryptocurrency market. But if the two factor are keep eyes on everyone will be aware halving in next 9 month is not guarantee bull market, although i don't know if this might be different, but it's better to make more informed decisions. In fact you have to look into those three thing to mitigate risks in cryptocurrency investment;
- Be update on market trend and new development, from their you will be able to know economy situation that will affect the market.
- Manage your risk and stay afloat in the market
- Diversifying,
Because, macroeconomics and geopolitical will continue to have effect on crypto market, but we can thrive on.
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Hi! Tsunsica here! One big issue when people come to the crypto world is that they put all crypto projects together like all are the same and all are "crypto" which is very dangerous, because one can be a huge opportunity while other can be just a scam, so education, doing your own research, and making a informed decision are very importan steps before going any further. Impulsive investors can be lucky but relying on luck is not a great move.
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