Additionally, you’ll notice that bitcoin price will vary somewhat between different Exchanges, but not entirely. The specific liquidity on an Exchange affects its price. Since offer and demand are not processed in a centralized manner, but rather on an Exchange by Exchange basis, so is the resulting price. Arbitrage plays an important role in flattening out the proce difference between Exchanges.

Of course supply and demand themselves will depend themselves on multiple factors such as regulation, news, sentiment, global and local economics, buzz, and so forth, pushing or retracting demand in the process.