The US economy is running at an extremely hot pace right now. And here's why this matters if you're investing—whether in traditional assets or crypto.

When economies overheat like this, it typically triggers policy responses that reshape market dynamics. Higher inflation concerns. Potential rate adjustments. Tighter liquidity conditions. All of these ripple effects hit financial markets in different ways, and digital assets aren't immune.

For investors, the key is recognizing that macro conditions like these don't operate in a vacuum. They influence everything from risk appetite to capital flows. Understanding how an overheating economy affects your portfolio allocation isn't optional—it's essential.