$BTC Bitcoin is a decentralized digital currency that relies on blockchain technology, where all transactions are recorded transparently and encrypted. The price of Bitcoin is influenced by several factors, including supply and demand, adoption by major institutions, and the evolution of legal regulations surrounding digital currencies. Reasons for its value increase often include growing interest from investors, the scarcity of Bitcoin due to its limited total supply (only 21 million coins), and increasing confidence in its use as a safe haven against inflation. Events such as Bitcoin's "Halving," which reduces mining rewards, also increase supply scarcity, driving up the price.