What Factors Influence the Price of Bitcoin?

Adekunle Joshua

Bitcoin prices are driven by supply and demand, just like other goods and services, exchange rates, etc

Price discovery for Bitcoin happens primarily on centralized crypto exchanges (CEXs)

The Bitcoin blockchain went live on January 3rd, 2009, and its creator envisioned it as a "peer-to-peer version of electronic cash."

Initially, Bitcoin didn't have a set monetary value as there was no marketplace for it. Determining its price in a fiat currency was challenging

The cost of goods, exchange rates, and commodity prices are determined by supply and demand, and the same applies to BTC and other cryptocurrencies

Bitcoin's market has evolved since 2010 when 10,000 BTC were exchanged for two pizzas. Now people buy luxury goods and even real estate using BTC

BTC has experienced a significant price increase since 2010, with the price reaching an all-time high of $69,990.90 in November 2021