Bitcoin (BTC) often behaves independently of traditional markets. While stocks and commodities are influenced by earnings, interest rates, and economic data, BTC is driven by supply-demand dynamics, investor sentiment, and macro trends like inflation or regulatory news. During times of market uncertainty, BTC can act as both a risk asset and a hedge, depending on investor perception. It’s more volatile than traditional assets, offering high risk and potential reward. Correlations between BTC and the broader market fluctuate—sometimes moving in tandem, especially during liquidity crises, but also diverging during crypto-specific rallies or downturns. BTC remains a unique, speculative asset class.
