How Bitcoin Price Is Affected By News

How Bitcoin Price Is Affected By News

The price of any asset is always influenced by a combination of factors. Unlike traditional financial assets, bitcoin has historically had its own set of factors affecting its price. Do things look different now? Let’s find out.

Basic factors: supply and demand

The price of Bitcoin is highly dependent on fluctuations in supply and demand, just like other assets. However, unlike fiat currency metrics, bitcoin’s supply is always known and its hard cap is set at 21 million coins.

Demand for bitcoin is always high on the agenda in the cryptocurrency world – which is why BTC adoption is so talked about. Higher demand will cause its price to rise, especially when institutional investors get involved.