$BTC

The price of Bitcoin is theoretically determined by the relationship between supply and demand. Since the supply of Bitcoin in the market is fixed, the price equilibrium is determined by the market's risk appetite and demand. The overall demand in the markets is influenced by many factors, including:

Central bank interest rate decisions

Geopolitical tensions

Global economic crises

Market risk appetite

These factors significantly affect the price of Bitcoin. The supply-demand balance, which is formed according to the market's risk appetite, is the mutual decision-making process regarding price between buyers and sellers for a particular product. The factor that determines the price of Bitcoin starts here; when people begin to buy Bitcoin (due to the limited amount of Bitcoin in circulation), its value starts to increase; when they start selling, its value decreases. In short, when demand for Bitcoin increases (risk appetite), prices go up, while when demand decreases, prices enter a downward trend