Question #202 ·
How do macroeconomic events like a U.S. government shutdown influence Bitcoin price movements?
- Economic turmoil motivates people to buy Bitcoin as safe asset.
- Shutdowns have no effect on Bitcoin because crypto operates independently.
- Such events reduce liquidity, raise investor fear, push prices down. Right answer
- They always cause Bitcoin prices to surge through strong demand.
Why is this the correct answer?
This is correct because a government shutdown ties up capital and reduces market participation, which lowers liquidity and increases risk aversion, leading investors to sell their Bitcoin holdings and causing prices to fall.