What Influences Bitcoin’s Price

Scarcity

Limited supply is one of Bitcoin’s most important features.There are only 18 to 19 million Bitcoins currently in circulation, and minting will stop at 21 million.Scarcity can help preserve value at a time of rising prices and lower purchasing power.

Mainstream Adoption

One of the main factors driving the price increase of Bitcoin is the rate at which new consumers are buying and exploring cryptocurrency. Bitcoin adoption has been increasing at an annual rate of 113% .If people warm up to Bitcoin at a comparable rate to that of the internet’s early days (or faster), the there will be 1 billion users by 2024 and 4 billion users by 2030.

Regulation

A new round of crypto regulation is largely thought of as an important next step as the crypto economy continues to expand. With a more mature regulatory regime in place, cryptocurrency and digital assets could be seen as reaching the mainstream.

Mining Cycles

Another major influence on Bitcoin’s price is a cycle known as halving. It’s complicated and algorithmic in nature, but in essence halving is a step in the Bitcoin mining process that results in the reward for mining Bitcoin transactions getting cut in half. Halving influences the rate at which new coins enter circulation, which can impact the value of existing Bitcoin holdings.