What is the price of Bitcoin?

The Bitcoin price actually means the price movement that Bitcoin makes. The price of Bitcoin is determined by finding an equillibriumin the global supply and demand, which is found by buyers and sellers of Bitcoin trading the asset on onlin e exchanges. Unlike the traditional stock market, the cryptocurrency market and thus the Bitcoin price is active 24/7. If more Bitcoins are sold than bought, the demand for Bitcoin is less and the price falls. Therefore, when the price of Bitcoin rises, there is more demand than there is supply. Traders are then willing to pay more and the price goes up.

The Bitcoin price (or rate it is trading at on exchanges) is known to be very volatile, this means that there can be large price fluctuations. The reason for this is that the Bitcoin market is still relatively small compared to other financial markets. As a result, a large Bitcoin purchase or sale can have a great impact on the price. For comparison, at the time of writing, the total value of the cryptocurrency market is +- 900 billion compared to the total stock market which has a value of 70,000 billion. Due to its volatility, the cryptocurrency market has the potential to be a market where there is a lot of return to be made from trading but, on the other hand, it also carries more risk.