Fed experiment shows how bitcoin rallies attract new crypto buyers

A Federal Reserve experiment found that bitcoin price rallies attract new crypto buyers, showing that rising prices are a major trigger for onboarding. That influx of new participants reinforces demand, amplifying momentum and increasing volatility as newcomers chase gains. For Bitcoin, the implication is that price dynamics can become self‑reinforcing and more sensitive to retail sentiment, raising the risk of sharper swings and warranting closer monitoring by investors and policymakers.