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Question #257

How can macroeconomic events such as the United States government shutdown influence Bitcoin’s price?

Category: General
Such macroeconomic events create uncertainty, driving investors toward Bitcoin as an alternative asset often boosting demand
Government shutdowns directly often increase Bitcoin mining profitability because more people mine during government work downtime
Macroeconomic events like government shutdowns affect only fiat currencies, leaving Bitcoin completely untouched by any impact

Why is this the correct answer?

This is correct because events like a government shutdown raise doubts about traditional markets and fiat currency stability. When investors worry about economic policy or liquidity risks, they often turn to Bitcoin as a hedge or alternative store of value. Increased demand under uncertainty can push Bitcoin prices higher, making this concept easy to grasp for beginners.

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