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How Do Cryptocurrencies Work \u0026 Gain Value? - Cryptocurrency Explained For Beginners - CP B\u0026WThe Bitcoin price is defined by supply and demand. When there is more demand for Bitcoin, the price goes up. When there is less demand, the price goes down. Bitcoin prices are driven by the same principles of supply and demand that govern the cost of goods and services, exchange rates, etc. Market forces called supply and demand influence Bitcoin's price. The price typically decreases when there are more sellers or vice-versa.