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Why is the Bitcoin price constantly changing?
Why is the Bitcoin price constantly changing?

Understand the factors that contribute to Bitcoin price volatility

Farhan avatar
Written by Farhan
Updated over a week ago


The price of Bitcoin, like other assets, is determined by supply and demand dynamics in the market. There are several factors that contribute to the constant change in Bitcoin's price, which will be discussed below.

If you are looking to buy and/or track Bitcoin and other cryptocurrencies, use the multichain Wallet app, trusted by millions to safely and easily send, receive, buy, sell, trade, and manage the most popular cryptocurrencies.

Table of contents

Factors that contribute to Bitcoin's changing price

The factors discussed below contribute to the changing price of many asset classes, not just Bitcoin's.

  1. Market Sentiment: Traders' and investors' perceptions of what Bitcoin should be worth can change rapidly. News, social media, and public opinion can influence market sentiment. For example, positive news regarding Bitcoin or cryptocurrencies in general can lead to an increase in buying activity, while negative news can lead to selling.

  2. Speculation: Many people buy Bitcoin with the hope that its value will increase. Speculative trading can cause significant price volatility as traders buy and sell based on short-term price movements rather than the inherent value of the asset.

  3. Supply and Demand: The total supply of Bitcoin is capped at 21 million coins. As more people become interested in Bitcoin, the demand increases. If demand exceeds supply, the price goes up, and vice versa.

  4. Regulatory News: Government regulations can have a significant impact on the price of Bitcoin. For example, if a major government announces a crackdown on cryptocurrencies, it may lead to a sell-off.

  5. Economic Events: Events such as financial crises, currency devaluations, or economic recessions can influence Bitcoin’s price. In some cases, Bitcoin is seen as a "safe haven" asset, and money may flow into it during economic uncertainty.

  6. Technological Developments: Technological advancements within the cryptocurrency space or Bitcoin network (such as upgrades or forks) can also affect the price.

  7. Market Liquidity: In a market with low liquidity, even small trades can have a significant impact on the price. In the early days, Bitcoin markets had relatively low liquidity, but as the market has grown, it generally takes larger trades to move the price significantly.

  8. Competition: The presence and performance of other cryptocurrencies can also affect the price of Bitcoin. For example, if a new cryptocurrency is gaining attention and investment, it could lead to a decrease in demand for Bitcoin.

  9. Macro Factors: Global economic indicators, such as changes in interest rates, inflation levels, and political stability, can also impact investor sentiment towards assets like Bitcoin.

How to check Bitcoin's current price

  1. You can track the real-time price of Bitcoin and other cryptocurrencies on our markets page here. Try out the calculator, which estimates the amount of Bitcoin you'll receive for a given dollar (or other currency) amount. Please keep in mind that the amount of Bitcoin you actually receive will vary due to fees.

  2. If you have the Wallet app, you can install markets widgets. These allow you to track the price of Bitcoin and other cryptocurrencies right from your device's home screen.

To install a Wallet widget on Android:

  1. Long press anyone on your device's home screen.

  2. Tap Widgets on the toolbar at the bottom.

  3. Select one the Wallet widgets.

To install Wallet widget on iOS:

  1. Swipe right from the Home Screen or Lock Screen.

  2. Touch and hold a widget or an empty area in Today View until the apps jiggle.

  3. Tap the Add button. in the upper-left corner.

  4. Scroll down to select a widget, then choose from three widget sizes.

  5. Tap Add Widget, then tap Done.

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