What determines a bitcoin's value?

Could you elaborate on the key factors that determine the value of Bitcoin? I understand that market forces play a significant role, but I'm curious about the specific factors that drive its valuation. For instance, does the scarcity of Bitcoins, its decentralized nature, or its adoption rate among merchants and investors have a significant impact? Furthermore, are there any external economic indicators or events that tend to influence Bitcoin's price movements? I'd appreciate a comprehensive breakdown of these factors and how they interact to determine Bitcoin's value.