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2024-06-07 10:56:23

josswilbraham on Nostr: How much of Bitcoin’s price is driven by macroeconomic factors? According to a ...

How much of Bitcoin’s price is driven by macroeconomic factors?

According to a study by Redalyc over a three-year period 2017 - 2019, around 95% of the price movement (a correlation co-efficient ‘R’ of 0.9465) can be attributed to five macro-finacial and liquidity measures.

The study suggests that Bitcoin's price is influenced by a variety of macroeconomic factors including the amount of money in circulation, the performance of the stock market, expected market volatility, the price of gold, and the strength of the US dollar.

Whist it's important to note that these are just correlations, and the study doesn't prove that these factors directly cause changes in Bitcoin's price, it does provide some valuable insights into how Bitcoin interacts with the broader economy.
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