How can macroeconomic news like interest rate comments affect Bitcoin’s price swings?
Why is this the correct answer?
When central bankers speak about interest rates, they influence how investors perceive risk. Higher rate expectations can push investors toward safer assets and away from Bitcoin, causing selling. Lower rate outlooks can encourage risk-taking and prompt buying. Beginners should recognize that macroeconomic news changes the flow of money into or out of cryptocurrency markets, which in turn triggers volatility and noticeable price swings.
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