ongoing research reveals four factors that affect the price of Bitcoin. These include media hype and uptake by peers, political uncertainty and risk (such as the election of Donald Trump or the vote for Brexit), moves by governments and regulators, and the governance of Bitcoin itself.
1) Animal spirits
Economists have long had a notion that psychological factors affect investor decisions. This is called animal spirits and refers to investors making decisions based on the behaviour of other market participants and their own intuitions, rather than hard analysis.
2) Political risk
Political risk around national currencies can also affect the price of Bitcoin as people use it to hedge against price movements in a particular currency, or they need to quickly move large amounts of value out a country or currency.
3) Regulatory moves
Regulators around the world have had to catch up to the rise of Bitcoin. They must decide, for instance, how it will be treated by the tax system, or whether and what regulation applies to its use.
4) Bitcoins governance
Although Bitcoin is a decentralised currency, some decisions about how it will work or evolve need to be made from time to time. These also have an impact on the price.
The software used to verify Bitcoin transactions is created by developers and is run by miners (the global network people who verify Bitcoin transactions).
hope this helps
