Since Bitcoin's launch over 15 years ago, the same question keeps repeating: Who determines its price?

Is it the hands of major investors known as "whales"?

Or are the developers who are advancing the Bitcoin protocol the ones with influence?

Or are governments and economic decisions the main drivers?

In 2025, the picture looks more complex than ever.

First: Whales – the most influential player

Whales are investors or institutions that own thousands of Bitcoins. And although Bitcoin is a decentralized system, the movements of these large wallets can change market direction.

The number of wallets holding more than 1000 Bitcoins rose to over 1450 wallets by May 2025.

Institutions like MicroStrategy and BlackRock together control about 6% of the total supply, which is a huge number given that the total supply is fixed at 21 million coins.

But it does not stop at accumulation alone, as whales often sell at peak times, leading to sudden corrections in the market.

On the contrary, periods of inactivity in their movements usually coincide with strong rallies, as happened in April when Bitcoin surpassed $110,000.

In summary: Whale behavior is diverse, with some accumulating long-term, while others prefer quick profits. However, their impact remains crucial.

Second: Developers – building the rules for the future

Technical updates in the Bitcoin protocol do not occur frequently, but when they come, they leave a clear mark.

SegWit in 2017: Contributed to reducing fees and increasing network efficiency, and was part of the backdrop of the major surge at that time.

Taproot in 2021: Made transactions more private and efficient, and opened the door for more advanced applications.

Ordinals and BRC-20 in 2023 and 2024: Introducing non-fungible tokens (NFTs) and meme coins on the Bitcoin network itself, generating a multibillion-dollar market and raising mining fees.

The future (2025): The discussion now revolves around updates like Covenants and OP_CAT that may give Bitcoin greater flexibility for use in smart contracts and programmed payments.

So, developers do not directly move the price, but they set the infrastructure that opens the door to new uses, which reflects on market confidence and its value.

Third: Governments – do not control but influence

No government can fully control Bitcoin, but it is heavily influenced by regulatory decisions and economic policies.

Regulatory approvals: The U.S. decision in 2024 to allow Bitcoin ETF funds was a turning point, attracting billions of dollars from institutions and raising the price above $73,000.

Restrictive legislation: The European Union's proposals to impose restrictions on self-custodial wallets caused a temporary decline due to privacy concerns.

Economic policies: The U.S. Federal Reserve's halt on interest rate hikes in late 2023 and its signals to reduce them in 2024 increased investor appetite for Bitcoin as a scarce asset.

China as an example: Despite the ongoing ban on trading and mining, demand remained strong through external platforms and OTC deals, proving that Bitcoin transcends geographical boundaries.

So governments do not control directly, but they set the environment in which the market operates.

Who really determines the price?

The answer: everyone... and no one.

Whales move liquidity in sensitive times.

Developers shape the future of the network and give it new functionalities.

Governments press or support through economic and regulatory decisions.

Macroeconomic factors such as interest rates, inflation, and the strength of the dollar determine global risk appetite.

Sentiment and narratives are among the most important drivers: a wave of public optimism can sharply raise the price, while institutional caution may lead to a quick drop.

Bitcoin ultimately is not just a financial asset, but a reflection of a mix of faith, trust, and the ongoing confrontation between multiple forces.

Its price today is not a final judgment, but a momentary pulse that translates the market's interaction with all these forces.

$BTC

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