The value of Bitcoin, which is one of the leading crypto coins, is determined according to the last Bitcoin transaction made on exchanges. The ever-changing demand has a great impact on this issue. In other words, the displacement of opportunity and pressure balances in the buying and selling channels has a direct effect on the value of Bitcoin. If the pressure finds support from the buying side, it is expected to increase in the price level, while it would be correct to say the opposite for the selling side. There are multiple factors that affect the value of demand.
The media can influence the value of Bitcoin positively or negatively. In cases where the news causes uncertainty, fear and/or suspicion in users, an atmosphere of panic may occur and the selling pressure may increase, leading to a decrease in the value of Bitcoin. To date, the value of Bitcoin has fallen about 400 times due to the influence of the media. The media influence can create panic and selling pressure, as well as positively affect the markets and increase the value of Bitcoin. The news may allow Bitcoin to spread to a wider audience, leading to an increase in buy orders and an increase in the value of Bitcoin.
Approaching the highest value of Bitcoin can put selling pressure on Bitcoin holders. In the event of selling pressure, the value of Bitcoin may decrease towards its previous high. But in cases where the value of Bitcoin surpasses its historical high, it can have a positive impact on public opinion. In this case, buying opportunities in the markets can increase and increase the value of Bitcoin.
In economic or political crises that may occur in countries, the fiat currencies of countries lose value. In such cases, people may turn to alternative currencies because they do not want their money to lose value . Bitcoin is expected to be a substitute or even a substitute for money, especially in the near future, as it is almost today. Bitcoin, which contains the features of money to a large extent, which is the medium of exchange we use to sustain our lives today, increases its awareness day by day and becomes more concrete in the minds and is the reason for preference in the transactions to be made.
It was announced that Bitcoin will be produced in total 21 million units. Today, about 88% of it has been produced. Every 210,000 blocks, the Bitcoin Halving takes place, halving the amount of Bitcoin that can be mined. When Bitcoin production first started, 50 Bitcoins could be produced in 10 minutes, while currently 6.25 Bitcoins can be produced every 10 minutes. A decrease in the amount that can be produced in 10 minutes means that the supply is reduced, and a decrease in supply can lead to an increase in value. Therefore, over time, the value of Bitcoin can reach higher values.
Interest in Bitcoin may increase in situations such as important institutions accepting Bitcoin, declaring that they have Bitcoin in their vaults, or supporting exchanges with Bitcoin. After a company like Tesla and many other institutions announced in recent months that they are buying Bitcoin, other large companies may announce that they are buying Bitcoin in 2021. After such news, confidence in Bitcoin may increase and this may increase people’s appetite to buy. This can have a positive effect on the value of Bitcoin.