Macroeconomic Factors That Can Affect Crypto Prices

There have been times when Bitcoin prices show a move subsequent to the economic outlook. The most recent movement to be recorded was on October 24: Bitcoin rose to around $110,000 shortly after the Bureau of Labor Statistics released their CPI numbers for September, and it has since held support in the $108,000–$110,000 range. That’s too coincidental to be a coincidence, and this article aims to shed light on the magnitude of macroeconomic effects on crypto traders’ behaviour.

TL;DR:

• Bitcoin is no longer an isolated asset. Its price is increasingly connected to the traditional economy, often moving in sync with the stock market and reacting strongly to major economic news like inflation (CPI) reports.

• The main reason for this is massive institutional adoption. The huge success of spot Bitcoin ETFs is integrating crypto into the global financial system by bringing in billions of dollars from big players.

How cryptos find their way into the global financial system

Bitcoin has made global headlines persistently since 2017 and is now considered an emerging asset class. The promising technology behind cryptocurrencies as well as the scarcity of many digital assets (including Bitcoin) secures them a place on many big players’ balance sheets, therefore, any change in the economic policy can lead to an adjustment in crypto demand from these stakeholders.

More obvious correlation between Bitcoin and other assets

A blog post by the International Monetary Fund (IMF) earlier 2022 shows that Bitcoin price has been tracking the stock market more effectively since 2021, and that trend has evolved further into 2025.

Source: newhedge.io

Meanwhile, recent data from Matrixport tells us that the correlation between Bitcoin price and the tech-savvy NASDAQ 100 has fluctuated but remained positive overall. The largest cryptocurrency displays a clear tendency to move in tandem with the stock market in general, meaning what hits the stock market could also hit Bitcoin.

The relationship between Bitcoin and bonds is yet to be confirmed, but the recent trend shows a negative correlation, once again proving the correspondence between Bitcoin and stocks. If you are not familiar with the subject, bonds and stocks usually have an inverse relationship, which is to say stocks go up when bonds decline.

With Bitcoin dominance hovering around 59%, the global crypto market often shows signs of progress when there is a rise in BTC price. That would make crypto indirectly subject to economic policies.

Growing presence of traditional institutions in crypto markets

One word for the financial world must be ‘interconnectedness’. In many cases, derivatives products can function as forecasts of spot prices, giving hints into the expectation of investors in the next periods. When talking about the S&P 500 or NASDAQ 100, we know that they are representatives of the U.S. largest companies, hence these indices can demonstrate the general market sentiment.

In the case of cryptocurrencies, and Bitcoin in particular, there are several things to watch out for: the global market cap, the 24-hour spot volume, futures open interest rates, futures 24-hour volume, long/short ratio, and Bitcoin ETFs.

Bitcoin ETFs give participants of traditional markets the opportunity to capitalise on the lucrative returns of BTC without holding the digital asset directly. And the growing number of Bitcoin ETFs, especially with the SEC's approval of spot Bitcoin ETFs in early 2024, leading to record inflows throughout 2025, reflects the enormous demand from institutional investors, who can exert substantial influence on Bitcoin prices. Even BlackRock, the world’s biggest asset manager with more than US$10 trillion in assets under management, has seen massive success with its iShares Bitcoin Trust (IBIT), which has amassed nearly $100 billion in AUM as of October 2025 and generated over $240 million in annual revenue, making it the firm's most profitable ETF. The sentiment observed in such markets will eventually be transferred to the Bitcoin spot market, thus triggering a price reaction from cryptocurrencies.

Funding is another aspect that could mirror the behaviour in traditional finance (TradFi) markets. Forecasts now indicate that direct institutional investment into Bitcoin is set to accelerate significantly. It is fair to assume that the period of 2024-26 has perfectly collided with the influx of capital, with institutional adoption accelerating.

Source: UTXO Management & Bitwise Asset Management

How crypto markets react to macroeconomic changes

Considering the ties between cryptocurrencies and TradFi actors and the fact that the economic situation frames most of our life choices, the decision to invest in digital assets should, of course, be affected by macroeconomic changes.

Inflation & Interest rates

There are several ways through which inflation can impact crypto prices. A healthy dose of inflation is an indicator for a reasonable rise in spending, which, in turn, stimulates production, guarantees jobs, and relieves the repayment obligations for debtors. However, the FED will step up to curb rampant inflation by raising interest rates.

Often referred to as the next-gen hedge against inflation, Bitcoin and cryptocurrencies are believed to perform better when the consumer price index (CPI) soars. Is that really the case? Let’s consider the time frame from February to March 2025 below.

This period was marked by a high correlation between Bitcoin and the NASDAQ 100 and widespread market reaction to signs of inflation's moderation.

High inflation hurts investors, as their profits may turn out to be losing after being adjusted. And some studies point out that there might be a negative correlation between stock value and inflation, meaning that earnings may contract during periods of spiralling inflation.

Another thing affected by higher interest rates is the cost of borrowing, hence the reduction in funding reserves for crypto startups and the availability of capital, be it for investment or trading purposes. Meanwhile, falling BTC prices (often triggered by higher rates or inflation fears) can point to better prices and higher volume of BTCUSDT funds such as ProShares’ Short Bitcoin Strategy ETF (BITI), as well as a great opportunity for other Bitcoin trusts to accumulate the digital asset.

You can be part of the price determination process

Bitget futures trading is an indispensable product of crypto exchanges for two main reasons:

(1) many use futures to resist a sudden movement in crypto prices and

(2) now that some countries regulate the holdings of crypto assets, futures trading offers a gateway to crypto trading without ownership.

Bitget provides 690+ pairs for futures trading, with a maximum leverage of 125x. Your position on Bitget futures can serve as a buy/sell signal for traders of the corresponding spot markets. If you don’t know much about trading, we suggest you check out Bitget Copy Trade, Bitget’s product designed to encourage crypto derivatives trading. The trader network of Bitget consists of experienced traders and copiers, with the former mapping out a comprehensive trading strategy so that the latter can make profit just by initiating identical orders. That way, you do not only help determine the final price for crypto assets but can also earn good money without too much trouble.

Disclaimer: The opinions expressed in this article are for informational purposes only. This article does not constitute an endorsement of any of the products and services discussed or investment, financial, or trading advice. Qualified professionals should be consulted prior to making financial decisions.