Question #199 ·
How can global events like U.S.-China trade tensions or Federal Reserve rate cuts influence Bitcoin’s price movements?
- They control blockchain upgrades and network difficulty adjustments automatically in real time.
- They determine mining rewards schedule which fixes Bitcoin issuance rates permanently automatically.
- They affect investor confidence and risk appetite driving buying or selling pressure. Right answer
Why is this the correct answer?
This is correct because events like U.S.-China trade resolutions or Fed rate cuts change how investors view risk. Positive news can boost confidence and prompt buying, while negative or uncertain news can trigger selling. Beginners benefit from knowing that macro events often translate into market sentiment swings that impact Bitcoin’s price.