A risk assets market shock happens when investors suddenly exit high-risk assets like stocks, crypto, and growth assets due to economic uncertainty, policy changes, or global events.
Triggers often include: • Interest rate hikes
• Inflation surprises
• Geopolitical tension
• Liquidity or banking stress
During these shocks, markets shift from risk-on to risk-off, causing sharp sell-offs and high volatility. Crypto usually reacts faster and more aggressively due to leverage and low liquidity.
📉 Short-term panic is common
📈 Long-term opportunity often follows
Stay disciplined, manage risk, and avoid emotional decisions.
