How did strong U.S. economic data on January 22 influence Bitcoin’s volatility ahead of the FOMC meeting?
Why is this the correct answer?
This is correct because unexpectedly strong jobs and inflation figures made investors believe the Federal Reserve would delay cutting interest rates. Higher rates generally reduce risk asset appeal, so traders sold Bitcoin to lock in profits before the FOMC meeting. Beginners should understand that macro data can change rate expectations, which in turn impacts the perceived attractiveness of speculative assets like Bitcoin.
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