The focus on Bitcoin as a hedge against instability in traditional finance has been heightened by macroeconomic events in China and the US. The impact of macroeconomic factors on Bitcoin has increased in 2024 and 2025, compared to a period of decline in 2023.

China's recent rate cut and the US credit downgrade have influenced Bitcoin positively. China's decision to lower its lending rates aims to boost its economy amid trade tensions with the US. This move injects liquidity into global markets, which can benefit high-risk assets like Bitcoin.

On the other hand, the US faced a credibility crisis with Moody's downgrade of its sovereign credit rating due to fiscal deficits and rising debt burden. This downgrade, combined with China's easing measures, has boosted the appeal of Bitcoin as a safe-haven asset.

Bitcoin, often referred to as digital gold, saw increased interest as a store of value in times of economic uncertainty. The weakening of the US Dollar Index and the rise in gold prices indicate a flight to safety, benefiting assets like Bitcoin.

In conclusion, Bitcoin is gaining momentum as a resilient alternative in the face of macroeconomic challenges and uncertainties in traditional financial systems. Its value proposition as a non-inflationary, politically neutral asset may become more appealing in a landscape of volatile markets and shifting central bank policies.