1. Who controls the price of Bitcoin?

Indeed, the price of Bitcoin is determined based on supply and demand in the market. Investors (or traders) are the ones who buy and sell Bitcoin, and these transactions drive the price up or down. There is no central authority (like a central bank) that controls the price of Bitcoin; rather, it is a free market that relies on the decisions of individuals and institutions.

2. What is a correction?

A correction is a term used in financial markets (including Bitcoin) to describe a temporary decline in price after a strong rise. Typically, a correction is considered a drop of 10-20% from the recent peak. But why does this happen if investors are the ones in control?

3. Why does the price drop and is called a correction?

A correction occurs as a result of collective investor behavior, which is driven by several psychological and economic factors:

Profit-Taking:

When the price of Bitcoin rises significantly, some investors decide to sell a portion of their holdings to realize profits. This collective selling leads to a decrease in price.

Fear of a bubble: After a strong rise, some traders may feel that the price has risen "excessively," prompting them to sell out of fear of a potential crash, which adds downward pressure on the price.

Natural market correction: Markets do not rise or fall linearly. After a period of rapid rise (which may be driven by enthusiasm or positive news), a kind of "rebalancing" occurs.