Supply and demand
Like any market, the price of Bitcoin is mainly driven by supply and demand. Since Bitcoin has a fixed supply of 21 million coins, rising demand — especially during bull runs — pushes the price up.
Market sentiment and news
Public opinion, media coverage, and social media hype can cause quick price changes. Positive news, such as institutional adoption, tends to boost the price, while negative events can trigger sell-offs.
Macro events and regulations
Global economic trends, inflation fears, or interest rate changes can affect crypto prices. Regulatory announcements — such as bans or approvals — often have an immediate impact on the market.
Investor behavior
Retail investors, institutional traders, and so-called “whales” (large holders) can all influence the market differently. Panic selling or sudden buying by major players can lead to sharp price movements.
