What Is Bitcoin?
Bitcoin (BTC) is the world’s first and largest cryptocurrency by market capitalisation. Created in 2009 by the pseudonymous Satoshi Nakamoto, Bitcoin introduced a decentralised digital payment system that operates without banks, governments, or central authorities. Every transaction is recorded on the Bitcoin blockchain, a public ledger maintained by a global network of computers called miners.
Bitcoin has a fixed supply of 21 million coins, making it inherently deflationary. Approximately 19.8 million BTC have been mined as of 2026. The remaining supply is released through a process called mining, which involves solving complex cryptographic puzzles. Every four years, the reward for mining a new block is cut in half in an event called the halving. The most recent halving occurred in April 2024, reducing the block reward from 6.25 BTC to 3.125 BTC.
What Drives the Bitcoin Price?
Bitcoin’s price is driven by a combination of supply constraints, institutional demand, macroeconomic conditions, and market sentiment. The five most important factors in 2026 are:
- ETF inflows and outflows. US Bitcoin spot ETFs, led by BlackRock’s IBIT, now collectively hold over 5% of all circulating BTC. Daily ETF flow data has become the most-watched indicator for institutional demand.
- Halving cycle. Historically, Bitcoin price peaks 12 to 18 months after each halving as new supply tightens. The April 2024 halving placed 2025 to 2026 in the historically strongest part of the cycle.
- Macroeconomic conditions. Bitcoin increasingly trades as a risk-on asset alongside equities during periods of Federal Reserve tightening, and as a safe haven during geopolitical uncertainty.
- Mining economics. When Bitcoin’s price falls below the cost of production (approximately $88,000 per BTC for median miners in early 2026), selling pressure from miners increases and hash rate may decline.
- Regulatory environment. US regulatory clarity, particularly from the SEC and CFTC, has historically been a major price catalyst. The 2024 spot ETF approvals triggered one of Bitcoin’s strongest rallies.
Bitcoin Price History
| Year | Low | High | Key Event |
|---|---|---|---|
| 2020 | $3,858 | $29,300 | Third halving, institutional entry (MicroStrategy, Square) |
| 2021 | $27,734 | $69,000 | All-time high, El Salvador adoption, China mining ban |
| 2022 | $15,599 | $48,086 | FTX collapse, Luna/UST implosion, bear market |
| 2023 | $16,500 | $44,000 | Recovery, ETF anticipation, BlackRock filing |
| 2024 | $38,500 | $108,000 | Spot ETF approval, fourth halving, new all-time high |
| 2025 | $74,000 | $109,000 | US Strategic Bitcoin Reserve, institutional acceleration |
| 2026 YTD | $62,000 | $92,000 | US-Iran tensions, ETF record inflows Q1, miner stress |
How to Buy Bitcoin
The safest way to buy Bitcoin in 2026 is through a regulated exchange. For US residents, Coinbase and Kraken are the most trusted options. For global users, Binance offers the highest liquidity. After buying, storing BTC in a hardware wallet significantly reduces the risk of exchange hacks or platform failures.
For a full step-by-step walkthrough, read our How to Buy Bitcoin in 2026 guide.