## Why must encryption investors keep an eye on this "thermometer" in the economy?

If you operate in the encryption market but know nothing about gross product (gross domestic product), you may make wrong decisions at critical moments. This economic indicator not only affects traditional stock markets but also has a profound impact on the volatility of cryptocurrencies.

## What is Gross Product?

In simple terms, it is the total value of all goods and services produced and sold by a country during a specific period (usually a year or a quarter). From cars and clothes to haircuts and medical services—anything that someone pays for is included in this metric. It is a key data point for measuring the health of a country's economy.

## Three Ways to Understand the Calculation Logic of валовий продукт

**Production Method:** Statistics of the total value of goods and services produced across all industries, covering everything from agriculture to technology.

**Income Approach:** Summarizes all income earned by the nation from various sources, including wages, business profits, taxes, etc.

**Expenditure Method:** Sum all consumption expenditures (consumers, businesses, government) and then add exports minus imports. The three methods should ultimately yield the same result and thus validate each other.

## Why does the encryption market dance along with валовий продукт?

This is the part that investors should really pay attention to. When the gross product grows, it indicates that the economy is expanding: corporate profits rise, job opportunities increase, and consumer confidence is high. In this atmosphere, investors' risk appetite increases, making them more willing to invest in stocks, bonds, and even cryptocurrencies. Crypto assets like Bitcoin and Ethereum often experience an increase during this period.

On the contrary, when the валовий продукт shrinks, the economy faces the risk of recession. Unemployment rates may rise, businesses cut back on investment, and consumer demand weakens. Investors may panic and sell risk assets to protect their wealth. At this time, the encryption market usually experiences selling pressure.

## The most critical insights

When the gross product data is released, you will see significant fluctuations in the market. If the data is better than expected, it may trigger a chain reaction of "risk assets rising"; if the data is worse than expected, the encryption market often bears the brunt.

Therefore, smart encryption investors should not only focus on on-chain data and project fundamentals, but also develop the habit of looking at macroeconomic data. The gross product is like a barometer of the economy; understanding it in advance can help better predict market shifts.