Why is Bitcoin so ‘expensive’? And what actually gives it value? 

Behind the price are market mechanics, sentiment shifts and real-world constraints that don’t fit neatly into a single answer. Read on to find out more.

What determines Bitcoin’s price?

Bitcoin’s price is set the same way as most traded assets: By buyers and sellers agreeing on a price in the market. When demand exceeds the available supply, price tends to rise. When selling pressure outweighs buying interest, the price falls.

How willing people are to buy or sell can be influenced by a few important factors: Liquidity (i.e., in deeper markets with more active orders, prices usually move more smoothly), market sentiment, news, social media and broader risk…