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Bitcoin Breaks Away from Global Economic Trends in October 2024 

Bitcoin Breaks Away from Global Economic Trends in October 2024 
On October 1, 2024, Bitcoin experienced a significant surge in price while the Global Central Bank Balance Sheet (GCBBS) experienced a sharp decline. This divergence between Bitcoin and traditional economic measures raised questions about what triggered it. Bitcoin's rally coincided with reduced correlation to central bank liquidity measures, while the GCBBS dropped significantly and continued to decline. The token maintained bullish momentum above the 200-day moving average, while the GCBBS fell below its moving average. Possible reasons for this divergence include central banks tightening monetary policies, regulatory deadlines impacting digital assets, institutional Bitcoin adoption, macroeconomic shifts, and increased scrutiny of traditional financial strategies. The analyst who shared the chart sparked debate on Bitcoin's role in the financial system, with some suggesting central banks may be accumulating Bitcoin and others questioning the sustainability of this trend. This divergence highlights the potential shift in financial paradigms as decentralized assets gain prominence.

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