How do macroeconomic indicators impact Bitcoin’s price?

Macroeconomic indicators such as inflation rates, interest rate decisions, and GDP growth significantly affect Bitcoin’s price. For example, rising inflation often increases Bitcoin demand as a hedge against currency devaluation. Conversely, when central banks raise interest rates, investors may move away from riskier assets like Bitcoin in favor of traditional investments with higher yields. Economic recessions and geopolitical tensions also influence Bitcoin’s appeal as a store of value. Monitoring these indicators alongside Bitcoin’s live performance on btc price live helps traders make informed decisions.