$BTC

The monetary policies of central banks in various countries have a significant impact on Bitcoin's price. Loose monetary policies, such as the Federal Reserve's quantitative easing, may lead to the depreciation of fiat currencies, prompting investors to turn to Bitcoin as a safe-haven asset. Conversely, tightening policies may weaken Bitcoin's appeal. Additionally, the introduction of central bank digital currencies (CBDCs) may pose competition to Bitcoin, affecting its market position.