The BTC/USD exchange rate represents the value of one Bitcoin (BTC) in US Dollars (USD) and is the world's most widely traded cryptocurrency pair. Unlike traditional currency pairs, BTC/USD is highly volatile, influenced by market demand, institutional adoption, regulatory developments, macroeconomic conditions, and Federal Reserve (Fed) policies. Since Bitcoin is decentralized and not controlled by any central bank, its price is largely driven by investor sentiment, supply scarcity (Bitcoin has a fixed supply of 21 million coins), and macroeconomic trends such as inflation fears, monetary policy shifts, and risk appetite. Like gold, Bitcoin is often seen as a store of value or a hedge against inflation during economic uncertainty or USD weakness. Conversely, when interest rates rise, or regulatory crackdowns occur, Bitcoin faces downward pressure.
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BTCUSD FAQs – Your Questions Answered
What makes Bitcoin different from fiat currencies?
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Bitcoin is decentralized, capped at 21 million coins, operates without central bank control, and trades 24/7.
Why is Bitcoin so volatile?
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Its smaller market size, speculative demand, regulatory uncertainty, and sentiment-driven trading cause frequent large price swings.
What drives Bitcoin's price?
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Institutional adoption, regulation, macro trends, halving events, market sentiment, and derivatives activity are key drivers.
Can I trade Bitcoin 24/7 on TMGM?
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Yes. TMGM offers continuous Bitcoin CFD trading, including weekends, although spreads may widen during periods of low liquidity.
Do I own Bitcoin when trading CFDs on it?
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No. You trade price movements only, without owning the underlying asset or needing a wallet.