where does the price of bitcoin come from?

[Zlantann]

Like other commodities or assets the price of Bitcoin is determined by the force of demand and supply. The higher the quantity demanded the higher the price, while the lesser the quantity demanded the lesser the price. When people sell their Bitcoin because of certain prediction or uncertainties the quantity of Bitcoin in the market would increase which would make the price to drop. While when people save or keep their Bitcoin asset and are not willing to sell, the price would go up because it is now scarce in the market. Don't also forget that the price of Bitcoin like any other investment commodities can be manipulated. But the impact of manipulations on Bitcoin is minimal because it is decentralized.

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[kryptqnick]

People can make all sorts of assumptions and predictions, but there are only a handful of ways to affect the price, and they are not in our hands. One is being an extremely rich and influential person like Elon Musk, and make a big announcement and possibly pour a billion or two into or out of Bitcoin. Then there are governmental decisions of countries that have a lot of crypto traders or miners. If there's a bill to ban some crypto activities in a country like that or if a country like that surprisingly decides to adopt a very favorable crypto policy, that can affect the price as well. Also, if you're WHO or something like this, very influential, and you make an announcement that can have a major effect on the economy, that will affect the price as well. But in all these cases we're talking about a short-term effect, and I'd say a normally no more than 20% price change. Whether this trend persists or the price quickly gets back to its previous range basically depends on the community of traders and investors and their behavior. We're all a small part of that community, too small to cause serious change on our own or even if many people unite.

[Wexnident]

It's no one but at the same time everyone I guess? No single person could possibly predict the price but at the same time, the price adjusts to whatever the general sentiment of the market (which is based on the demand of owners/users). It's decentralized meaning no one can actually affect what it is, the transactions, the wallets (decentralized ones, not centralized). Basically, it just takes the processes away from a centralized group. If you were going to start predicting, then leave it to predicting only and do it yourself. Don't trust any so called predictions.

[suzanne5223]

The value of every currency ^{(fiat or BTC)}lies in its level of supply and increasing demand. This is what Satoshi understand when he introduced block halving in other to control the inflation in the price of the Bitcoin market, the government ought to have learned through the Bitcoin concept but they still choose to follow their printing of my cash.

It's no one but at the same time everyone I guess? No single person could possibly predict the price.

Anyone can predict the price of the Bitcoin market though the result may not be correct.

but at the same time, the price adjusts to whatever the general sentiment of the market (which is based on the demand of owners/users).

I agree with this.

[evichi]

Market forces determine the price of Bitcoin. The market forces are the BUY and SELL that takes places in various exchanges and trading platforms. Bitcoin is decentralized - not controlled by anybody. Bitcoin is very volatile, that is, the value goes up and down very rapidly. In a day, the price can change up to 3 or more times. Buy or Sell transactions affect the price of Bitcoin. It is highly sensitive to market forces. It is not like fiat currencies that government of some countries manipulate leading to inflation.

[BitcoinPanther]

who is the person who says that today it should be worth 40k and tomorrow 42k? isn't it something decentralized that nobody controls? who agrees on the price to be like this?

Because it is decentralized and as long as it is not manipulated, the price of Bitcoin come from the demand of the people who are buying Bitcoin and willing to part with their hard earned fiat currency.  News, upgrades and updates also help to boost the trust of people thus creating more demand on BTC.

[coolcoinz]

The global price tickers for bitcoin are imperfect because they depend on the data sent by exchanges and only by a handful of the biggest exchanges. Also, big exchanges react automatically through bots. You cannot expect an exchange in Japan to react to a big selloff in Europe that happens in 3 am of Japanese time, yet exchanges react pretty fast when you look at the tickers.
The imperfection of this system could be seen in 2014 when Chinese exchanges were faking volume and falsifying data they were sending out. It can be seen during flash crashes when there's not enough liquidity.

Market forces determine the price of Bitcoin. The market forces are the BUY and SELL that takes places in various exchanges and trading platforms.

The invisible hand is a metaphor for how, in a free market economy, self-interested individuals operate through a system of mutual interdependence.
https://www.investopedia.com/terms/i/invisiblehand.asp

[taufik123]

-snip-and when investors have stated that they bought in large quantities and were followed by many other investors, then that's where the price will go up, and our job is to find areas to get out of the market.

be careful with the statements of other investors or whales, because maybe it's just manipulation, FOMO made to raise the market price and then slam it. The most correct and preferable is to look at the market with technical analysis, it will describe how the market is and what is likely to happen next.

-snip- Actually there's nothing to follow someone TA especially if the analyst has an impressive portfolio and high accuracy prediction in the past because they are spending time to analyze chart compared to us that casually checking chart with just common knowledge only in TA. I think we just need to become diligent on choosing who to follow if we have no talent on this particular area.

Following someone's TA is not wrong, but we as followers must know and understand what they share. At least we also have to know the basic science of TA so that we can choose whether TA is accurate or not. and lastly, as you said, choosing someone who really has fuel and is professional in the field of trading, it is very necessary. Never follow someone who is only good at manipulating, good at making FOMO news but doesn't have good TA and FA knowledge.

[justdimin]

No asset that is freely traded works like that, there is a process that is called price discovery that is what determines the price of an asset.

Basically it is based on perception, a transaction between a buyer and a seller does not happen unless the buyer and the seller both think they are getting a fair price for an asset, this process happens over and over again all over the world and this helps determine the price of an asset at any given time, however due to different circumstances that perception changes which changes the demand and the supply and it is what causes the price to go up or down, as the perception of what the buyers and sellers think it is a fair price is always changing.

We all decide it basically, that's the short story. When we are talking about "the market" that is us, the buyers and the sellers. As long as we say it should go up, we all buy more bitcoin because we believe that it should be going up, and since we buy it, it does go up, and when we say it should go down then we sell it and it does go down because we sold it. That's how the decision is made.

Certainly there will be some who say it should go up when majority say it should go down or vice versa, but the point here is that majority should say something and agree to it all together, if that happens then the market will decide on the price of bitcoin.