What is a Macro Analysis?

Macro analysis is a part of the Fundamental Analysis that involves the evaluation of factors that affect the value of a particular coin from the global industry point of view. It involves a deep analysis of all the different industrial, socio-economic, and political factors and how they ultimately affect the value of your preferred digital currency investment. These include the global politics revolving around crypto coins, past and upcoming legislation by individual countries for or against the coin as well as the overall acceptance of the coins by the populace and merchants across the globe. Most of these factors often have a significant impact on the demand of the coin. You, therefore, must look at how such external factors as increased electricity bills and the cost of GPU systems affects supply.

The looming government interference in the crypto world with threats of regulations, for instance, has one of the most significant impacts on Bitcoin prices as well as that of other crypto coins in the market. But considering the fact that the highly decentralized nature of the industry makes it impossible for effective regulation, most of these governments are targeting the institutions that facilitate its smooth trade. These governments have, for instance, exerted firm control on mining and crypto exchanges, and this tends to affect the supply of the said cryptocurrencies, which in turn affects the prices.