The price of Bitcoin ($BTC ) has recently experienced notable fluctuations, reflecting the dynamic nature of the cryptocurrency market. After reaching record levels, the currency saw price corrections, followed by strong rebounds, keeping traders and investors on edge.
These fluctuations can be attributed to several factors. First, macroeconomic factors play a significant role; Bitcoin is often affected by global economic fears, as investors seek "safe havens" in times of uncertainty. Second, regulatory news directly impacts market sentiment. Any announcements related to government regulations or the adoption of Bitcoin by major companies can lead to sharp fluctuations.
Additionally, supply and demand play a crucial role. As the supply of Bitcoin approaches its maximum limit (21 million coins), any increase in demand, whether from individual investors or institutions, can drive prices up significantly. Conversely, large sell-offs by "whales" (large holders of Bitcoin) can cause rapid declines.
