Since its birth, the price of Bitcoin has experienced many large fluctuations. In recent years, the price of Bitcoin has shown an upward trend driven by multiple factors. In the long run, the price of Bitcoin is affected by many factors, including market supply and demand, investor sentiment, macroeconomic environment, policies and regulations, etc.
Market supply and demand
1. Supply
The supply of Bitcoin is limited, and according to its design, the total amount will eventually reach 21 million. This scarcity gives Bitcoin a certain value storage attribute. It is worth noting that the supply of Bitcoin is halved every four years, which is one of its built-in economic models. The most recent halving occurred in April 2024, when the block reward was halved from 6.25 BTC to 3.125 BTC. This event usually has a positive impact on the price of Bitcoin (Source: Zhihu Column).
2. Demand
The demand for Bitcoin is affected by many factors, including investor interest, institutional adoption, payment and settlement needs, etc. In recent years, as Bitcoin has gradually been accepted by mainstream institutions and investors, its demand has continued to increase. For example, the successful launch of the spot BTC ETF attracted a large amount of capital inflows, driving up the price of Bitcoin (source: Zhihu column).
III. Market Trends
1. Mainstream Adoption
Bitcoin is gradually gaining recognition in the mainstream market. More and more institutions and companies are beginning to accept Bitcoin as a means of payment or investment target. This trend is expected to drive further increases in Bitcoin prices.
2. Technological Innovation
Technological innovation in the Bitcoin ecosystem is also constantly driving its development. For example, the launch of second-layer solutions such as the Lightning Network has increased Bitcoin's transaction speed and throughput; innovations such as the Ordinals protocol and BitVM have brought more programmability and functionality to Bitcoin.
In summary, the BTC token market presents a complex and changing situation. Investors should remain cautious when participating in the market and pay close attention to market dynamics and changes in policies and regulations. $BTC $ETH $BNB #美国6月非农数据高于预期 #德国政府转移比特币 #币安合约锦标赛 Follow and view the pinned page, bull market strategy layout, share various passwords, and take you to learn more about 100x coins!
