#BTCvsMarkets Bitcoin, the first decentralized cryptocurrency, has proven to be a unique asset compared to traditional markets. Its historical volatility has been notably high, although recent studies suggest a decrease, even being less volatile than some S&P 500 stocks during certain periods. Unlike stocks, the price of Bitcoin is primarily driven by supply, demand, and market sentiment, significantly influenced by the decisions of investors and traders.

While some consider it a hedge against inflation and market uncertainty, its correlation with traditional assets like gold has been inconsistent. However, a stronger correlation with global liquidity has been observed, suggesting that Bitcoin could act as a barometer of liquidity in financial markets. Despite its speculative nature and associated risks, the growing institutional interest and programmed scarcity continue to be key factors in its valuation.