If you are new to the world of cryptocurrencies and wonder why
the price of Bitcoin rises one day and falls the next, you are not alone. This question is asked by millions around the world, and the answer is not as complicated as it seems.
First: Supply and Demand — The Golden Rule
Bitcoin is limited to 21 million coins only, and this number will never increase. When people want to buy it more than they want to sell it, the price goes up. The opposite is also true.
Secondly: Major institutions control the trend
Bitcoin is no longer exclusive to individuals. Today, giant companies like BlackRock and Morgan Stanley are pouring billions into Bitcoin-linked ETF funds. When these entities buy, the price rises significantly and rapidly.
Third: News and political events
Even political decisions affect Bitcoin. Recently, when President Trump announced a blockade of the Strait of Hormuz, Bitcoin suddenly dropped to $70,741 in one day, before bouncing back up.
Fourth: Technical analysis indicators
Professional traders use tools like RSI, MACD, and moving averages to determine when to buy and when to sell. These tools do not guarantee results, but they help make more logical decisions.
Fifth: Inflation and the global economy
Many people turn to Bitcoin as a refuge from inflation. When commodity prices rise and the value of traditional currencies falls, Bitcoin seems like an attractive alternative to preserve purchasing power.
Currently, Bitcoin is trading around $74,000, and it is in a gradual recovery phase after peaking in October 2025. Is this a good time to buy? Always do your own research before any financial decision.
💡 Remember: Do not invest more than you can afford to lose.