Question #282 ·
How do economic announcements like US tariff proposals influence Bitcoin price volatility?
- They set Bitcoin transaction fees based on global trade volumes affecting network congestion levels
- They create uncertainty that can trigger buy or sell responses among traders and investors Right answer
- They increase block mining rewards causing more miners to join and inflate Bitcoin supply
Why is this the correct answer?
This is correct because announcements on tariffs or other economic policies often change expectations for inflation, currency strength, or global trade. Traders react quickly to such news, driving Bitcoin price swings as they adjust positions in response to the new economic outlook.