Level 4 — Advanced Market Analysis
Macroeconomic analysis
6 minute read
The bigger economic picture
Illustrative example · not live data
Inflation and jobs data
Interest-rate expectations
Investors reassess risk
Crypto doesn't move in a vacuum. Since 2020 especially, it has traded like a 'risk asset' — rising when money is cheap and plentiful, falling when money is tight.
The big drivers: interest rates (higher rates make safe savings more attractive and drain money from risky assets), inflation (high inflation pushes central banks to raise rates), and economic growth (recessions make investors sell risky things first).
The US Federal Reserve matters most — its rate decisions and statements move every market on earth, crypto included. Key dates: Fed meetings, inflation (CPI) releases, and jobs reports.
This is why the homepage of this site has an economic calendar and live US figures for inflation, rates, unemployment and GDP. Before blaming a coin's chart for a bad week, check whether the whole market was reacting to a rate decision.
Key points to remember
- Crypto trades as a risk asset
- Interest rates and inflation are the big drivers
- Fed meetings, CPI and jobs reports move everything
- Check the homepage calendar before big decisions