In trading terms, the clearing price is where ‘buy’ orders match ‘sell’ orders, resulting in actual transactions. If the price is too high, buying interest dries up. Too low, and sellers back off. Over time, markets discover a point where Bitcoin changes hands freely.

On exchanges, this fluctuates minute by minute. The clearing price also stabilizes around major global exchanges, although differences can arise based on local regulations or liquidity constraints. Essentially, the clearing price is the real-time consensus of what Bitcoin is ‘worth,’ determined by supply and demand at that exact moment.