Global economic conditions also weigh heavily on Bitcoin's price. Inflation, for instance, is a critical factor. As central banks, particularly the U.S. Federal Reserve, adopt aggressive policies to combat inflation, the appeal of "safe haven" assets like Bitcoin rises. When traditional fiat currency weakens due to inflationary pressures, Bitcoin often experiences an influx of demand from investors looking to hedge against currency depreciation.

Bond yields are another macroeconomic lever that indirectly affects Bitcoin's price. Rising yields typically signal higher confidence in traditional financial systems, which can pull investment capital away from alternative assets like Bitcoin. Investors often turn to higher-yield assets like Bitcoin to offset traditional market returns when bond yields are low.

Central bank policies, particularly those affecting interest rates, are a final factor to watch. As rates rise, borrowing costs increase, making risk assets like Bitcoin less attractive. However, with predictions of potential interest rate cuts in the coming years, Bitcoin can see renewed interest if central banks move toward more accommodative policies.