Bitcoin's price volatility often mirrors global economic instability, but the relationship is complex. During economic uncertainty—such as inflation spikes, geopolitical tensions, or currency devaluation—investors may turn to Bitcoin as a hedge, driving demand and price swings. For instance, in 2022, Bitcoin surged amid inflation fears but later crashed as central banks raised rates. Its decentralized nature makes it sensitive to sentiment, not just fundamentals, amplifying volatility when global markets falter. However, some argue Bitcoin’s fluctuations are driven more by speculative trading and market manipulation than macroeconomics. While economic instability can influence Bitcoin, its price also reflects internal crypto market dynamics, like liquidity or regulatory news. Thus, it’s a partial but noisy indicator of global economic health.