Are you wondering what factors can affect Bitcoin’s price? Well, you are in the right place; there are several.
Supply and Demand
Bitcoin has many similarities to actual Gold. Just like gold, Bitcoin has a limited supply and is considered a store of value. Hence, supply and demand will affect Bitcoin’s price, just like it affects the price of gold.
People are looking to buy Bitcoin for as cheap as possible during each market cycle.
Exchanges
Exchanges can sometimes have issues and they may be taken down for maintenance. When an exchange is taken down (especially a big one), the market loses volume, thus making the price more malleable.
Exchanges that support leverage trading, and the normal ones, can also manipulate Bitcoin’s price for their own benefit.
News
News definitely have a great impact on the markets. Some news that is meant to FUD (fear, uncertainty, doubt) Bitcoin, or something related to it could crash the market, while good news could pump the market.
Example of news would be technical analysis, updates, forks, hackers stealing funds, adoption, etc…
Other Coins
If other popular coins gain/lose momentum, it can result in a price increase/decrease of Bitcoin as well as the other way around.
Traders
Traders are always active and they bring in most of the volume. They are reacting to news and all sort of indicators. Traders can vary from institutional to your average joe.
Miners
Due to miners, the network can become slow, and the transactions expensive. That can definitely affect the price.
Miners can also have an impact over the market by selling their mined Bitcoins.
