Several macroeconomic factors have influenced recent cryptocurrency market volatility. Rising interest rates, driven by central banks like the U.S. Federal Reserve, reduce liquidity, pressuring speculative assets like crypto. High inflation has sparked mixed reactions—some view Bitcoin as a hedge, yet persistent inflationary pressures and tighter monetary policies have triggered sell-offs. Geopolitical tensions, such as ongoing global conflicts, heighten uncertainty, shifting capital toward safer assets like bonds and away from riskier cryptocurrencies. Additionally, a cooling global economy and stock market downturns, particularly in the U.S., have correlated with crypto declines, as seen in Bitcoin’s drop from $110,000 to $76,000 since February 2025. However, anticipated rate cuts and increased liquidity could reignite bullish trends, as historical patterns suggest crypto thrives in expansionary conditions. Volatility remains tied to these shifting macro dynamics.