$BTC Impact of market sentiment and investor confidence

Spread of panic: Large-scale natural disasters often trigger panic in the market. Investors may worry about the further spread of fires, economic instability and other potential risks, and thus sell risky assets, including Bitcoin, causing the price of Bitcoin to fall.

Changes in risk preferences: Natural disasters such as the California wildfires will change investors' risk preferences. Investors may be more inclined to invest their funds in relatively safe assets, such as treasury bonds and cash, and reduce investment in high-risk Bitcoin, which will also have a negative impact on Bitcoin prices.

Impact of the energy market

Limited energy supply: Fires may damage local energy infrastructure, such as oil production facilities, transportation pipelines, power plants, etc., resulting in limited energy supply and rising energy prices. Bitcoin mining requires a lot of energy consumption. Rising energy prices will increase the cost of Bitcoin mining, which will affect the supply and price of Bitcoin. If the mining cost is too high, some miners may choose to suspend or reduce mining activities, resulting in a decrease in the supply of Bitcoin and an increase in prices; conversely, if the energy supply can be restored in time and the mining cost decreases, the supply of Bitcoin may increase and the price may fall.

Changes in energy demand: Post-disaster reconstruction and other activities will increase demand for energy, which may further push up energy prices, thereby indirectly affecting the price of Bitcoin. At the same time, the increase in energy demand may also lead to stricter government allocation and management of energy, which may restrict the development of energy-intensive activities such as Bitcoin mining, affecting the supply and price of Bitcoin.