Bitcoin price | Token Spoken
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How is the Price of Bitcoin Set?

Thanks to the payment system and a decentralized agreement network, Bitcoin, digital money, allows users to transfer directly to each other without a medium. How is the price of BTC set?

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Bitcoin’s value is determined by the supply-demand relationship on independent stocks. BTCTurk and similar stock markets, which match buyers and sellers’ orders, publish transactions made by users as price and market information. Since different Bitcoin stocks are not linked to each other or to a center, the price of Bitcoin on each stock market occurs independently. If the purchase demand is higher, the price increases. If the selling demand is higher, the price decreases. Arbitrage transactions made by users allow the price to be similar in the stock market. Breaking news can affect the price of bitcoins or altcoins in a positive or negative way.

BTC, which is around 17,000 USD at most in January, started to decrease as of mid-January. The average price of BTC in January was 13,000 USD and the average of February was 9,418 USD. In March, BTC’s price was below $7,000.

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The price gap between the stocks in South Korea and the rest of the world for Bitcoin and other cryptocurrencies has been quite open in January 2018. Bitcoin is traded as 23,000 USD in Bithump, South Korea’s cryptocurrency stock while it is traded as 16,000 USD in Bitfinex, Hong Kong’s the bulkiest stock. The reason for this gap is the prohibition of foreign trade of cryptocurrency in South Korea in the last months of 2017. The fact that it has become nearly impossible for foreigners to benefit from arbitrage opportunities in South Korea explains this situation. This price difference is expected to continue in the long-run because the prohibition of cryptocurrency trading for foreigners continues to exist.

BTC, which has declined since mid-January 2018, is sold for $6,712 USD in Bitfinex and $6,856 USD in Bithumb as of April 2018. The decrease in confidence in the market, the decline in demand and in a similar way, an increase in supply are among the factors that can cause the price of BTC to fall. Explanations made by countries on BTC regulations, worries about theft of cryptocurrencies and cyber attacks and security risks also affect BTC’s price.

On altcoin side, since some altcoins in South Korea or Japan are also used for everyday shopping and trade they can be priced at a slightly higher price compared to other international stocks.

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