🌍 International Factors Affecting the Crypto Market
1. Geopolitical conflicts and sanctions
Impact: Global tensions—such as wars or economic sanctions—have led to increased demand for cryptocurrencies as an alternative to traditional financial systems.
Example: In regions affected by sanctions, like Russia or Venezuela, crypto usage has surged as a workaround to financial restrictions.
2. Global regulatory shifts
Impact: Regulatory uncertainty fuels market volatility. Some countries are tightening rules, while others are integrating crypto into their financial systems.
Current trend: Organizations like IOSCO have proposed global standards for crypto regulation, which could boost institutional confidence but also limit decentralization.
3. Monetary policy and interest rates
Impact: Central bank decisions—especially from the U.S. Federal Reserve—on interest rates directly affect market liquidity. Higher rates tend to reduce investment in riskier assets like cryptocurrencies.
4. Technological innovation and institutional adoption
Impact: Growing adoption of blockchain and asset tokenization is driving market expansion. Major companies and banks are exploring practical crypto applications.
5. Global economic trends
Impact: Inflation, recession, or economic growth influence how cryptocurrencies are perceived—either as a hedge or a speculative asset. In uncertain times, some investors turn to Bitcoin as “digital gold.”
