If you have ever wondered why Bitcoin is sometimes worth $1 and other times $97,000 like today, you are not alone. The price of Bitcoin can feel like a mystery at first—but do not worry, we are here to help you understand how it works in plain language.
So, what gives Bitcoin its price?
Bitcoin started with no price at all. In the early days, people could earn it by using their computer to solve puzzles (this is called mining). But back then, there was no real market for it. You could not buy a coffee with it or check its value on an app.
Everything changed in 2010, when a man named Laszlo Hanyecz traded 10,000 Bitcoin for two pizzas. That event became the first time Bitcoin was given a real-world price—around $0.0025 per coin. People now celebrate this moment as “Pizza Day.” From there, Bitcoin began getting traded more seriously.
Price vs. Value—what is the difference?
We often talk about price and value as if they are the same, but they are not. The price is what you see on exchanges—the number in dollars, euros, or whatever currency you have set. The value is what Bitcoin means to people: things like privacy, self-custody, or the ability to send money without banks.
You might not agree with everyone’s opinion about Bitcoin’s value. That is fine. What matters is what it means to you.
Bitcoin price moves because of supply and demand
The price of Bitcoin works just like any free market. When more people want to buy Bitcoin than sell it, the price goes up. When more people want to sell than buy, the price goes down.
Let’s say you are using an exchange and place a buy order at $80,000. That order will only go through if someone is willing to sell at that price. If everyone is holding out for $90,000, your order will just sit there. So, the price reflects where buyers and sellers agree.
Different types of buying
When you use an exchange, you can set a price and wait. That is called a limit order. You decide what you are willing to pay, and the exchange waits for someone to match your offer.
If you buy through a broker instead, they offer a price immediately and handle the purchase for you. You do not choose the price—they tell you what it is.
Some people use savings plans (called dollar-cost averaging or DCA). You buy Bitcoin on a set schedule—like once a week—without worrying about the current price.
What about big players?
Bitcoin’s price is not only moved by individuals like you and me. Large investors, companies, and even governments are starting to get involved. When they buy a lot of Bitcoin, it can affect the market in a big way.
Some of these large purchases happen quietly, outside of exchanges. These are called “over-the-counter” (OTC) deals. They are private trades between two parties and often happen so that prices on public exchanges do not spike.
Can Bitcoin’s price really change that fast?
Yes, and here is why. There are only 21 million Bitcoin that will ever exist. Some have already been lost forever. That means the number of coins available to trade is even smaller than you might think.
When more people want Bitcoin and fewer are willing to sell, the price goes up. If everyone holds on to their Bitcoin, it becomes harder to buy, and the price can rise quickly. This situation is sometimes called a “supply shock.”
Why is the price not even higher?
Even with good news, such as investment funds buying Bitcoin or countries adding it to reserves, the price does not always jump right away. That is because markets react based on how people feel about the news—and not everyone sees the same value in it.
You and I might get excited about a big company buying Bitcoin. But many others might not even hear about it, or they may not care. Market prices reflect a mix of all that emotion, interest, and knowledge.
In short, price is just the market’s opinion
The price you see today is not set by one person or one company. It is the result of millions of choices by people, bots, exchanges, brokers, miners, and more. Every action—from buying $10 worth to moving coins off an exchange—can shift the price, even slightly.
So when you ask, “Why is Bitcoin $97,000 right now?” the real answer is: because that is what buyers and sellers are currently agreeing on.
And remember—one Bitcoin is still one Bitcoin, no matter what the dollar price is. It is always about what it means to you as a Bitcoiner.