How do regulatory developments in major economies affect Bitcoin?
Regulations from countries like the U.S., China, or EU can cause strong price reactions. Positive developments, such as ETF approvals or legal clarity, boost investor confidence and demand. Negative news—like bans or heavy restrictions—can spark sell-offs. Regulation shapes market structure, access, and liquidity. Long term, clear and supportive rules can stabilize the market. In contrast, uncertainty or harsh measures create volatility. Bitcoin’s future often hinges on how global regulators adapt to the evolving crypto space.