Contrarily, bitcoin prices are influenced by the following factors:
- The supply of bitcoin and the market’s demand for it.
- The cost of producing a bitcoin through the mining process.
- The rewards issued to bitcoin miners for verifying transactions to the blockchain.
- The number of competing cryptocurrencies.
What causes Cryptocurrency rise and fall?
Since there are only 21 million Bitcoins in total, there is less circulation of the market currency as the reward decreases. And as more people become aware of the asset’s scarcity, more demand rises, resulting in a higher price.