How do U.S. economic events like government shutdowns and CPI data impact Bitcoin prices?
Why is this the correct answer?
Economic events like government shutdowns and CPI data releases introduce uncertainty about fiscal policy and inflation trends. When investors fear a shutdown or higher inflation, they may seek or avoid Bitcoin as a hedge, shifting demand rapidly. CPI reports can signal rising prices, boosting Bitcoin’s appeal as an inflation hedge, or show stable inflation, reducing urgency to buy. Beginners should watch these events since they often trigger sudden shifts in Bitcoin price by altering market confidence and risk appetite.
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