"It seems logical but we have to wait and see."
The cryptocurrency market suffered a significant hemorrhage last year, but it began to see a recovery in 2023 and macroeconomic developments are seen to shape the world of digital assets.
Here are three separate events that may have significant influence on crypto, the global economy, equity values and precious metals.
Inflation
Inflation is a major concern for investors as it plays an important role in the United States (US) market in 2023.
It is understood that soaring inflation not only makes it difficult for companies to increase sales and revenue but also prevents retail investors from investing in high-risk digital assets.
As a result, investors will examine how inflation could affect the US and global economy.
Recession
According to Kristalina Georgieva, the managing director of the International Monetary Fund (IMF) said that the new year will be more difficult, where she expects a third of the world economy will be in recession.
Following the market facing a significant recession, the growth of the world's three largest economies, namely the US, the European Union (EU) and China, began to slow down simultaneously.
Coupled with aggressive monetary tightening and geopolitical tensions, the economic downturn will impact global markets and force crypto companies to shut down their operations.
Global Supply Chain Disruption
In addition to the ongoing war between Russia and Ukraine, the situation of COVID-19 in China which is still not under control is among the situations that can burden the global supply chain.
Disruptions in global supply chains for wheat, natural gas, electronics and other commodities could lead to high prices for other goods.
If there is an ongoing crisis in the financial market due to that, the crypto market may be neglected or the growth of its services may be hindered.
