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Question #596

How have recent geopolitical tensions and new tariff announcements influenced Bitcoin price fluctuations?

Category: General
Geopolitical tensions boosted mining activity causing miners to sell more Bitcoin and prices
Tariff announcements led investors to treat Bitcoin as a risk-free safe-haven stabilizing prices
Tariff announcements increased uncertainty causing short-term sell-offs and heightened volatility in Bitcoin prices

Why is this the correct answer?

This is correct because when governments announce new tariffs or trade barriers, investors often fear broader economic impacts and move out of perceived risk assets like Bitcoin. That selling pressure drives the price down rapidly, creating spikes in volatility. Beginners should understand that markets react not only to crypto-specific news but also to global policy changes, and these reactions can cause sharp price swings in the short term.

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