The current price fluctuations in Bitcoin are driven by several key factors:
Supply and Demand Mechanics: Bitcoin's fixed supply of 21 million coins creates scarcity, which influences price movements based on demand fluctuations.
Market Sentiment and Speculation: Positive news can drive prices up, while negative events lead to declines. Media coverage and investor sentiment play significant roles.
Regulatory Developments: Government regulations and policies can significantly impact Bitcoin's price, with clarity often leading to price surges and restrictive measures causing declines.
