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What Factors Influence Bitcoin’s Price? Demand, Production, & media

Bitcoin is decentralized and does not have to be influenced by traditional macroeconomic factors. Monetary policy, inflation rates, etc., do not affect the previous or current BTC price. It is possible to compare Bitcoins with commodities.

Bitcoin’s price factors are multiple, mainly:

  • Supply
  • Demand
  • Production cost
  • Competition
  • Regulation
  • Media coverage

Let’s examine these factors to determine how they impact Bitcoin’s price:

Supply – The Cornerstone of Bitcoin’s price

The Bitcoin supply is very limited. It’s a deflationary currency –the total supply is fixed at 21 million BTC, which will be mined at a specific amount yearly through an algorithm.

Miners receive a reward in Bitcoin because they are the ones who create blocks to the Bitcoin blockchain. This algorithm cuts those rewards every 210,000 blocks. These “halving events” occur every four years.

A scarce asset will likely have a higher cost. And since Bitcoin’s supply is reduced as we move forward, it helps to potentially increase BTC’s price over time.

How Demand Affects Bitcoin’s Price

Demand and supply go hand-in-hand. Like any asset, high prices are a sign of limited supply and demand.

Regulated systems with high entry barriers require intermediaries that can add up to the transaction costs. Bitcoin’s transparency and accessibility make it a popular investment asset. This is not just for retail traders or financial institutions, but also for the average person and the bankless.

How Production Affects Bitcoin’s Price

The production cost is one of the key factors that determine Bitcoin’s value. It is broken down into two factors:

  1. Cost of equipment and energy consumption: to produce Bitcoins, miners need 1) mining software, which most are free to download, and 2) mining hardware, which can be expensive depending on the mining rig, but the more expensive, the more profitable.
  2. The difficulty level of the algorithm: miners must solve a mathematical puzzle to find an encrypted number. As a reward, the miner who solves this puzzle receives newly-minted Bitcoins as well as transaction fees. The puzzle is difficult to solve because the miner needs a lot of processing power and high energy consumption.

Competitors – Can Alternative Cryptos Affect Bitcoin’s Price?

Bitcoin dominates the mindshare of the crypto industry, but its dominance has been waning over time –38% dominance, as per data from CoinGecko.

This is mainly due to Decentralized Finance. It has revolutionized the way people finance, creating a more inclusive financial system that is both profitable and equitable. There are now thousands of options to Bitcoin. These alternatives can be used to either compensate for Bitcoin’s limitations (such as transaction throughput), or to add something to the market. Ethereum, the main alternative to Bitcoin, is the pioneer of DeFi.

Ethereum, a blockchain protocol, allows developers to create decentralized apps (DApps), of all shapes and sizes on its network. These include GameFi, Art, Metaverse and yield-generating protocols. This opened up new opportunities for financial incentives and elevated blockchain infrastructure to new levels in terms of use cases.

There are many blockchains that have made a name for themselves like Fantom, Solana and Avalanche. While new tokens and coins are being created every day, they offer little in the way of innovation. The top ten most valuable currencies according to market capital are those that could challenge Bitcoin. These data aggregators include CoinGecko and Coinmarketcap.

Regulation Plays For and Against Bitcoin’s Price

Bitcoin was born a year after the 2008 crisis, causing a global recession and exposing banks’ and significant financial institutions’ lack of regulation and transparency. Bitcoin is unregulated and will continue to be so. But, regulation by the government plays an important role in Bitcoin’s value.

Countries that allow crypto companies to operate legally can help Bitcoin and the entire crypto market. They also promote cryptocurrencies as an investment asset. Perhaps a Bitcoin-based exchange traded fund could be approved. Canada and Australia have approved ETFs for Bitcoin and Ethereum, which allows keen investors to get exposure to crypto assets.

But, negative regulation could be, for instance, a country such as China that cracks down on cryptocurrency and bans citizens from using it. Regulation will have an impact on Bitcoin’s value, good or bad.

Effect of Media Coverage on Bitcoin’s Price

The cryptocurrency market is one of the largest capitalizations worldwide. This is why it is essential to have timely media coverage of all developments in the DeFi and crypto worlds. BTC’s price rises when good news is spread via social media. It will naturally drop in price if it is bad news.

The media provides impartial coverage of all things related to Bitcoin and other cryptocurrency, as well as the elements that impact the decentralized market. This is crucial as it will have a large impact on investors’ outlooks, which is a key pillar that affects cryptocurrency prices. Are the prices going up, down, and sideways? Are Bitcoin’s difficulty rates increasing or are smart contracts finally being introduced by Cardano? Investors want to know the truth, no matter what it may be.

Final Thoughts

As you can see, Bitcoin’s prices factors are many and vary in complexity. Bitcoin is still a volatile asset and regulations don’t favor it. The factors that we have already mentioned will continue to affect Bitcoin’s price.

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Bitcoin

5 Best Cryptos To Buy As Bitcoin Price Heads Towards $90K

Disclaimer: This is a Press Release provided by a third party who is responsible for the content. Please conduct your own research before taking any action based on the content.


The price action of Bitcoin has witnessed a strong rebound. So analysts are now on the lookout for the best crypto to buy. This recent upsurge in Bitcoin is believed to mark the beginning of the long awaited bull run. As a result, many investors are considering altcoins like INJ, NEAR, TIA, SUI, and Remittix for huge gains. .

However, Remittix continues to shine brightly in the PayFi sector.  Read on to learn more.

Injective Teases Bullish Reversal Setup

Injective Teasers Based on Bullish Reversal If the rising channel support stays true, crypto expert Clifton Fx said, Injective might be preparing to review the upper border of the channel, a zone corresponding with past highs and denoting the next main resistance level.

On the other hand, a clear collapse below the present support would destroy the optimistic framework and maybe cause further downside and a test of less support zones. Since volatility still shapes price behavior all throughout the market, risk management is still very important.

Supported by oversold indicators and a historically meaningful support level, injective is displaying traditional signals of a bullish reversal. Coupled with rising market mood and Bitcoin’s strength, INJ might soon be on the rise, making it the best crypto to buy for those paying close attention.

NEAR Price Closes Below Support

NEAR has dropped since March 2024, according to the weekly time frame price study; it accelerated its fall from a lower high in December. Since then, the price has dropped nearly entirely without retracing, breaking from the $2.65 horizontal support range last week to a low of $1.82. The next nearest support is at the cycle lows of $1.25, which is about 40% below the present price.

Technical signals are clearly negative. Whereas the Moving Average Convergence/Divergence (MACD) is negative, the Relative Strength Index (RSI) is less than 50.

Both are declining, thereby verifying the negative NEAR trend. In 2025 the NEAR trend has been bearish, breaking off a long-term horizontal support level. Although the long run is bearish, there may be a notable short-term rebound. A breakthrough from its declining wedge may bring the NEAR price to $3.50. This makes NEAR the best crypto to buy.

Celestia (TIA) Price Outlook

Celestia is trading now between $2.31 and $4.17. Resistance lies close to $5.28; a second push is likely around $7.14; support is projected around $1.55. Bears have sway for now; the price is failing to rise higher and there is no significant directional trend. Careful trading within these ranges could test resistance and identify fresh support at the present critical level.

With a little weekly dip of 2.34%, Celestia (TIA) Price Outlook showed a 26.12% reduction over the previous month and a 59.19% fall over the last six months. With volatility characterizing their recent performance, price fluctuations have been significant and have resulted in notable changes in opinion. Indicators show a distinct downward trend throughout these periods and waning impetus as the market adapts.

SUI Price Action and Prediction

Following back-to-back Change of Character (CHoCH) and Break of Structure (BOS) pattern formations, the SUI price dropped significantly to $2.1395.

The crypto answered the CHoCH pattern fast. It happened close to $2.60, immediately reversing prices and starting a major drop.

As purchasers attempted desperately to absorb selling pressure, candle bodies hung over the $2.00 region without shattering it. Should prices continue to trade above the $2.00 support zone, a positive reversal of SUI might be seen. Should SUI close above the BOS level just below $2.40, a reversal would be confirmed and perhaps lead to more testing of the $2.60 supply zone.

If the price dropped below EQL, then a drop below $2.00 closing price would be inevitable, therefore verifying the continuation of the downtrend. Price decline might go into the intermediate zone of $1.80, where past accumulation was seen. Until the price structure dropped below the point of the $2.20 BOS support level, the market scenario generally remained cautious as short-term fluctuations continued at the $2.00 support level.

Why Remittix Is The Best Crypto To Buy Now

After selling over 528 million tokens and raising more than $14. 4 million in its presale stage, Remittix (RTX) is reinventing global payments by aggregating FIAT transactions using blockchain technology.

Remittix offers quick and competitively priced cross-border solutions. It is the better alternative to conventional payment providers like Stripe and Wise.Notable also is the open flat-fee strategy of the platform, which provides savings and openness over ridiculous rates of exchange of traditional banks.

Remittix is groundbreaking in the payments sector as it ensures that the whole amount sent reaches the receiver, therefore addressing unethical behavior all too frequently. The RTX currency shows strong investing possibilities at $0.0734 at the presale stage. Forecasts show an intriguing surge; demand for creative cross-border payment solutions is creating a 25x multiplier in the presale period and over 1,500% rises post launch.

Discover the future of PayFi with Remittix by checking out their presale here:

Website: https://remittix.io/

Socials: https://linktr.ee/remittix

Disclaimer: This is a Press Release provided by a third party who is responsible for the content. Please conduct your own research before taking any action based on the content.

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Bitcoin Tops $90K as Markets Rebound Despite Tariff Friction

The top digital asset roared past $90K on Tuesday morning as both traditional and crypto markets saw positive momentum despite Trump fumbling a trade deal with Japan. BTC Rally Defies Trade War Fears, Hits $90K Milestone Markets have been going haywire lately due to unresolved tariff concerns…
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Is iDEGEN (IDGN) worth a look as presale hits $22m?

As investors take note of the opportunities available in the market, one project attracting massive attention is iDEGEN. On February 27, 2025, the AI agent project’s token IDGN will go live. Ahead of this highly anticipated listing, the iDEGEN presale is on fire. Why is iDEGEN trending? Fresh momentum amid huge developments in the artificial…


The birth of iDEGEN: a new era of community-powered AI

As investors take note of the opportunities available in the market, one project attracting massive attention is iDEGEN.

On February 27, 2025, the AI agent project’s token IDGN will go live. Ahead of this highly anticipated listing, the iDEGEN presale is on fire.

Why is iDEGEN trending?

Fresh momentum amid huge developments in the artificial intelligence space have seen the project top $22.6 million. With just 10 days to go, the scramble to be part of the AI agent revolution is set to get even more frenzied.

This is because of the potential for iDEGEN to take over the AI meme coin space. iDEGEN is the first degen raised AI agent. Its unique approach had the agent starting off as a blank slate. However, it has learned everything from the community and posts once every hour.

An unfiltered approach and a growing market combine to put this project on top of the trending list. Over the past several weeks, iDEGEN has taken the center stage in driving the conversation on Crypto Twitter. Notably, the iDEGEN TikTok account is also recording a sharp spike in followers.

While its uncensored approach has landed the iDEGEN AI agent into X trouble, the bans have only helped fuel interest among investors.

Per details on the project’s presale page, the number of social impressions has jumped to over 2.5 million. The ICO has seen over 1.7 billion tokens sold, with potential hodlers currently above 24,700.

iDEGEN’s strong ICO run ahead of its debut in the market has investors excited for what’s possible. Speculation that top crypto exchanges could be eyeing IDGN for listing has only sparked further interest.

Is iDEGEN worth a look today?

The AI agent market is relatively small despite the recent breakout success for projects like Virtuals Protocol and ai16z. CoinGecko data shows the sector’s market cap today at $7 billion. In comparison, the meme coins market is at $81 billion and AI memes at just over $3 billion.

Given, the broader AI market, where OpenAI, Nvidia, Google and Microsoft among others are heavily investing in, is projected to rise further. These initiatives, including Project Stargate, suggest it might be early days for iDEGEN and other projects.

Presale opportunity is thus likely to be a major coup for early birds. Interestingly, there’s just 10 days to go before IDGN its exchanges on February 27, 2025. Buying at the current presale price of $0.0285 provides a bargain offer, with iDEGEN’s final presale price set at $0.038.

iDEGEN also offers staking opportunity, which has already attracted close to 100 million in staked tokens.

To learn more about iDEGEN, visit the official website.


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