What does the temporary price boost after lower-than-expected U.S. inflation data reveal about Bitcoin’s connection to traditional markets?
Why is this the correct answer?
This is correct because Bitcoin’s price movement after lower‐than‐expected inflation demonstrates its sensitivity to global economic indicators. Just as stocks or commodities may rally when inflation cools, Bitcoin can also experience short‐term gains. For beginners, this reveals that despite its decentralized nature, Bitcoin is not entirely isolated and can correlate with traditional financial markets during major economic events.
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