Bitcoin's price is largely determined by the market forces that drive demand and supply. A rising price indicates there are more buyers than sellers. On the other hand, a falling price indicates there are fewer buyers. This is similar to the way that the price of stocks and real estate fluctuates.
Bitcoin is a relatively new asset, about a decade old. As such, its price can jump up to more than $100,000 or plummet to zero, depending on a number of factors. One of these factors is the potential impact of government action on the price of Bitcoin. While it's hard to predict where Bitcoin prices are headed, the value of Bitcoin is highly susceptible to news events and security breaches.
