Inflation and Economic Uncertainty
The ongoing global economic uncertainty, particularly regarding inflation rates and central bank policies, is another significant factor pushing Bitcoin’s price higher. With rising inflation in many economies around the world, Bitcoin is increasingly being viewed by some investors as a store of value, much like gold. In times of financial instability, Bitcoin is seen as a potential hedge against currency devaluation.
For instance, Bitcoin’s price has often moved in opposition to fiat currencies, such as the U.S. dollar. With the dollar weakening in response to inflationary pressures, Bitcoin’s appeal as a non-sovereign, scarce asset is gaining more traction.
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