@benedictina9
How does Bitcoin’s correlation with traditional markets affect its price?
Bitcoin is often called "digital gold," but its price sometimes follows stock markets. In times of economic uncertainty, investors sell risky assets, including Bitcoin. However, during inflation or currency devaluation, Bitcoin acts as a hedge. Institutional investors holding Bitcoin alongside stocks can increase correlation. Over time, if Bitcoin adoption grows, it may decouple from traditional markets and behave more like gold.
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