The conection between Bitcoin and other risk assets (stocks for example) can be reduced to liquidity in the markets. The easier it is to borrow money, the higher the price will go.
Central bank policies, interest rates, influence the overall liquidity environment. In times of economic expansion, with accommodative monetary policies, liquidity tends to be abundant, leading to risk-taking behavior among investors who may allocate funds to both traditional and digital assets like Bitcoin.
This is why in 2020 pandemics, for example, we had problems but prices were going up.
Then inflation went parabolic as everything had too much money, as we produced less and consumed more.
The central banks had to hit the brakes and we almost jumped trough the windscreen.
As the fight against inflation is about to end, expect bitcoin price to go to 100.000 +.
We will find the news to explain why it happened, no worries.
We always did.
Central bank policies, interest rates, influence the overall liquidity environment. In times of economic expansion, with accommodative monetary policies, liquidity tends to be abundant, leading to risk-taking behavior among investors who may allocate funds to both traditional and digital assets like Bitcoin.
This is why in 2020 pandemics, for example, we had problems but prices were going up.
Then inflation went parabolic as everything had too much money, as we produced less and consumed more.
The central banks had to hit the brakes and we almost jumped trough the windscreen.
As the fight against inflation is about to end, expect bitcoin price to go to 100.000 +.
We will find the news to explain why it happened, no worries.
We always did.