Factors Affecting the Price of BTC
Demand and Supply
Bitcoin has a limited supply – a total of 21 million coins. Currently, approximately 19.83 million BTC are in circulation, and the mining of the remaining coins is slowing down due to the halving mechanism (periodic reduction of rewards for miners). If the demand for BTC continues to rise while the supply remains limited, its price may increase rapidly.
Competition Among Cryptocurrencies
Although Bitcoin remains the dominant cryptocurrency, its market share is decreasing due to the growing popularity of Ethereum (ETH), Solana (SOL), Cardano (ADA), and other digital assets.
Mining Costs
The process of mining new BTC requires significant computational power and high electricity costs. The more complex the mining (due to rising network difficulty), the higher the cost of one coin. Factors affecting mining costs and the price of BTC include:
Electricity Prices. Rising energy costs make mining more expensive, which can raise the minimum economically viable price of BTC.
Regulation of Mining. Changes in rules or bans on mining in key regions (e.g., China) reduce the number of miners and the network's hash rate
