How Bitcoin price is affected by the news

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

Basic factors: supply and demand

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

Demand for bitcoin has always been high on the cryptocurrency world’s agenda – which is why BTC adoption is so talked about. Higher demand will lead to an increase in its price, especially when institutional investors get involved.

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