Part 3/7:
One intriguing theory suggests that many Bitcoin investors experience a wealth effect—the idea that perceived wealth increases lead to higher spending on other assets. Not all newly acquired wealth in Bitcoin is reinvested back into crypto; a portion finds its way into the stock market and other areas of the economy. As this wealth effect plays out, analysts note its potential benefits for the economy as a whole, particularly in sectors like luxury goods, which have previously seen boosts following significant movements in crypto value.