The post Bitcoin’s Evolving Nature: Is It Becoming More Sensitive to Macro Forces? appeared on BitcoinEthereumNews.com.

Bitcoin’s transition towards becoming a traditional asset signifies a notable shift in market dynamics, reflecting broader economic influences. With the diminishing impact of its historical halving cycles, Bitcoin increasingly tracks macroeconomic indicators, particularly inflation rates. According to COINOTAG, “Bitcoin is evolving from a speculative asset to one that mirrors institutional economic behaviors.” This article explores Bitcoin’s transformation into a macro-sensitive asset, reflecting on its declining halving impacts and evolving economic relationships. Bitcoin’s halving highs keep shrinking Each halving cycle once promised monumental gains, but these returns are noticeably waning. The first halving delivered an astonishing 6,400% return, while subsequent halvings saw diminishing returns: the second halving yielded a reduced 3,200%, and the third provided a mere 1,200%. Currently, the ongoing cycle has barely surpassed 100% — even amidst Bitcoin reaching new all-time highs. This trend highlights a significant shift; Bitcoin’s post-halving rallies are not generating the excitement they once did. Source: IntoTheBlock The data reveals that Bitcoin’s response to its halving is weakening, suggesting the market’s mood is shifting away from a simplistic view based solely on supply shocks. With increasing institutional investment and a complex macroeconomic environment, Bitcoin is starting to behave less like a volatile, speculative asset and more like a stable, macro-aware financial instrument. While the halving still plays a role in moderating supply, it is no longer the dominant factor influencing Bitcoin’s price. Today, Bitcoin’s value is increasingly associated with liquidity cycles and broader economic signals, marking a critical transition in its market behavior. Bitcoin is now dancing to a different beat Shifting focus from halving dynamics, Bitcoin’s current valuation seems to resonate more with inflation expectations. Recent data shows Bitcoin’s price closely mirrors 5-year and 10-year breakeven inflation rates — key indicators of anticipated inflation based on the tug-of-war between nominal Treasuries and Treasury Inflation-Protected…

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Filed under: News - @ April 20, 2025 11:06 pm