In my opinion, there are many reasons for Bitcoin's price fluctuations.
Things are valuable because they are scarce; there are only 21 million in total, and the amount mined is increasing while the new supply is decreasing. If everyone wants to own it and the number of buyers increases, the price will naturally go up. Moreover, with the economy being unstable, money is sometimes losing its value, so people are looking for something to preserve their wealth; Bitcoin is regarded as a kind of 'digital gold,' and many buy it to hedge against inflation, which drives the price up. Additionally, if any country recognizes Bitcoin for use, or if there are favorable policies towards it, that will certainly attract more investors, which will also raise the price. Furthermore, if Bitcoin's technology improves, making it more convenient and secure to use, people will be more willing to buy, pushing the price up. When everyone has confidence in Bitcoin, they tend to invest heavily, which inflates the price.
When Bitcoin rises, the impact varies for different people. Those who bought Bitcoin early are likely making a substantial profit now. However, if you see its price surging and rush to invest or borrow money to buy, you could face significant losses if the price drops. For the entire industry, when Bitcoin rises, more people will pay attention to this field, and more money and talent will flow in, promoting the development of blockchain technology and making the industry more active. In the financial market, a rise in Bitcoin could prompt traditional financial institutions and regulatory bodies to pay more attention to it, possibly leading to the emergence of more financial products related to Bitcoin. However, the price of Bitcoin is highly volatile; if it becomes more closely linked to traditional financial markets, it could bring instability to those markets. While Bitcoin is rising, the risks are significant. On one hand, different countries have varying regulatory policies, sometimes tightening and sometimes relaxing. If an important country suddenly announces strict regulations, limits on trading, or increased taxes, the price of Bitcoin could plummet. On the other hand, there are security risks associated with Bitcoin, such as hacker attacks, issues with trading platforms, or losing one's private key, which could result in losing money; if market confidence is shaken, the price will suffer as well. Additionally, the Bitcoin market is not very transparent and is susceptible to manipulation by large funds or institutions; if they want to raise the price, they can do so, and if they want to lower it, they can push it down, making it difficult for ordinary investors to navigate.