Top 3 Macroeconomic Events That Can Shape Crypto Industry In 2023

The year 2022 was difficult for crypto assets, and as the globe enters 2023, the macroeconomic scenario looks gloomy. Macroeconomic developments will continue to shape the crypto economy as well as the overall economy.

The following is a look at three separate events that might have a significant influence on the global economy and the values of equities, precious metals, and crypto assets.

Inflation

In most major economies, inflation is expected to peak. Inflation is a key concern for investors, and it will certainly play a role in US markets in 2023. Rising inflation may make it more difficult for companies to increase sales and revenue. It might also dissuade retail investors from investing in high risk digital assets.

Therefore, investors will be paying careful attention to how inflation impacts the US and global economies.

Recession

IMF managing director Kristalina Georgieva recently said in an interview that the new year is going to be “tougher than the year we leave behind.”

She said, “We expect one-third of the world economy to be in recession. Even countries that are not in recession, it would feel like recession for hundreds of millions of people.”

As the world’s three big economies, the US, EU, and China, are all slowing down simultaneously, the markets are facing the threat of a looming recession.

With aggressive monetary tightening and geopolitical shocks, economic downturns may force crypto companies (or projects) to close their doors or hinder their growth. Fears of a recession have clouded global markets.

Also Read: 5 Crypto Coins That Performed Worst In 2022

Global Supply Chain Disruptions

The ongoing war between Russia and Ukraine doesn’t show any signs of slowing down. Additionally, the COVID-19 situation in China is far from “under control.” Both of these situations are straining the already strained global supply chains.

From the movement of wheat and natural gas to electronics and other commodities, the fragmented global supply chain may lead to high prices for items. If there’s a continued crisis in the financial market due to this, it may translate into apathy for the crypto industry. And may hamper the growth of the crypto industry.

Also Read: Top Crypto Trends To Look Forward To In 2023