What do recent tech stock declines tell beginners about Bitcoin’s sensitivity to traditional market movements?
Why is this the correct answer?
This is correct because declines in technology stocks often coincide with broader risk-off sentiment among investors. As traditional equity markets suffer, traders may sell Bitcoin as well, given its risk-asset characteristics. For beginners, this means Bitcoin is not fully isolated and can move alongside stocks, so watching equity trends can help anticipate crypto price changes.
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