Why is the price of Bitcoin so important?

The bitcoin price refers to the market trading price of Bitcoin relative to the US Dollar (USD). It is not only a standard for investors to measure value, but also directly affects the operation of the entire cryptocurrency ecosystem. For example, the performance of most altcoins is often influenced by the fluctuations in BTC price.

For newcomers, the price not only represents market sentiment, but also reflects the intersection of global capital flow, regulatory attitudes, and technological progress.

How to check real-time prices?

Image:https://www.gate.io/trade/BTC_USDT

For example, as of May 15, 2025, the BTC price is about $103,000.

When observing prices, it is recommended to pay attention to the following data:

• Current quote (Bid/Ask)
• 24-hour percentage change
• Volume
• Historical highs and lows (e.g. this month or this year)

These values collectively constitute a portrait of the price ‘behavior’, which helps newbies understand how it operates.

Five key factors influencing the price of Bitcoin

1. Global economy and monetary policy

- Federal Reserve interest rate changes will directly affect investors' risk preferences
- When inflation expectations rise, Bitcoin is often seen as the "digital gold".

1. On-chain data

- The number of coin-holding addresses and active addresses can reflect changes in long-term demand.

1. Market sentiment and public opinion

- Viewpoints from X (Twitter), Reddit, or mainstream financial media can quickly amplify FOMO (fear of missing out) or panic.

1. Regulatory environment

- If a country adopts Bitcoin as a legal means of payment, it will bring price benefits.
- Strict regulatory measures may trigger short-term adjustments

1. Technological progress and event-driven

- Halving (such as April 2025) events typically trigger long-term price reassessment
- Bitcoin ETF and institutional custody services will also enhance trustworthiness

Brief Analysis of Current Market Status (May 2025)

Recently, the Bitcoin price has been fluctuating between $103,000 and $105,000. Combining the chart (as shown on the Gate platform), Bitcoin has gradually risen above $70,000 at the end of 2024, reflecting that the positive expectations after the halving have been partially realized.

From a technical perspective, it is currently in a moving average entanglement zone, indicating a relatively balanced power between bulls and bears. However, on-chain data shows that large addresses (whales) are still continuously accumulating, indicating that long-term investors remain optimistic about the future market.

How should Newbies handle price information?

For novice investors, the fluctuation of BTC prices often causes anxiety. However, the key is to establish your own price understanding framework:

• Do not be swayed by the daily ups and downs of emotions
• Try Dollar Cost Averaging (DCA) to reduce buying risk in the long term
• Using the price range as a reference, for example, a range of $90,000–$110,000 can be considered a reasonable range at present.
• Pay attention to news sources and distinguish the ‘fake fluctuations’ caused by real and fake news.

The key to investment is not to guess every rise and fall, but to stand on the side of the trend.

Summary and Suggestions

BTC price changes frequently, but it is not entirely random. For newbies, the important thing is not to chase the rise and fall, but to understand the structural logic behind the price. 2025 is a key point for Bitcoin to enter the mainstream capital market. It is recommended to be patient, analyze rationally, and use price data as a starting point for market learning.