– Read the latest news about Bitcoin Price to learn more about the most recent fluctuations, reasons behind it, and more with our BTC Price news section.
BTC price establishing is an interesting phenomenon and widely differs from the way the price of ordinary money is set. First of all, despite popular belief, BTC does have a cost price. It is set as a combination of expenses on electricity, transaction fees, and the installation/purchase of software. However, the price of BTC is not determined by its cost price and is mostly estimated by consumer demand. It causes huge fluctuations in the price of BTC, as Bitcoin has no backing, and traders are largely dependent on the news of BTC price, multiplying volatility of the asset. As the BTC market cap is nearly $159 billion, the price of BTC became an important economic factor, gathering attention from financial institutions of various kinds and stimulating the research of behavioral factors that influence the price of BTC, and working on ways of predicting its changes.