Now, are you ready to talk about the last decade or so? Bitcoin has turned out to be a super exciting option for traders and investors back then. Many just bought Bitcoin and held onto it, riding the wave of its value going up over time. This strategy is fondly known as ‘HODLing’ in the Bitcoin world. If you want to learn more about Bitcoin halving and how it impacts your HODLing strategy, consider enrolling in the Bitcoin Halving Course.
But it’s not all been smooth sailing. There have been times when Bitcoin’s value took a nosedive. Take, for instance, after November 2021 – things got a bit rocky with interest rates going up and the financial markets getting shaky, which hurt Bitcoin’s price.
So, where did Bitcoin come from? Well, it appeared right after the big financial crisis. A mysterious person or group known as Satoshi Nakamoto came up with it. They had this idea of moving away from traditional government and bank-controlled money to a system that runs on its own.
Bitcoin’s got a cap – only 21 million coins can ever exist. This limit means when more people want Bitcoin, its value can really shoot up. That’s why loads of people have jumped in, hoping to see the price go up even more.
Now, here’s something interesting about Bitcoin’s price. It’s really driven by how people feel about it. When everyone’s optimistic and thinking big, the value soars. But when there’s fear or bad news, the value can plummet.
There’s a catch, though. Using Bitcoin for everyday stuff like shopping isn’t so easy. Even some big companies that started accepting Bitcoin kind of backed off. These days, people see Bitcoin more as a digital version of gold – a place to store value. But remember, gold’s been around for thousands of years, and Bitcoin’s just a newbie in comparison.
Time to take a quick tour of Bitcoin’s price history
2009 – July 2013: The Early Days
Bitcoin started on January 3, 2009, but finding a clear price for it before mid-2010 is tricky. The first recorded exchange rate, in late 2009, was 5,050 bitcoins for just $5.02. That’s about $0.00099 per bitcoin – crazy cheap, right?
In 2010, Bitcoin was still a pretty underground thing. There’s this famous story where someone bought two pizzas for 10,000 bitcoins. Yep, that happened! By 2011, Bitcoin’s price was slowly climbing and hit $1 in February, and then zoomed up to $8 by May. But by June 2011, it reached almost $30 before crashing down again.
In 2012, Bitcoin was kind of steadying itself, getting a bit stronger. That year saw its first ‘halving’ event, where miners got half the bitcoins for their work. The year ended with Bitcoin at $13.50.
2013 was when more people outside tech circles began noticing Bitcoin. The world’s first Bitcoin ATM appeared, and the price started the year over $20. By April, it had shot past $100 and then hit $230. After a drop, it recovered a bit, showing just how unpredictable it can be.
2013 – 2017: Into the Spotlight
Bitcoin really hit the mainstream in late 2013. It started November at $213 and in just a few weeks, it was over $1,200, ending the year around $805. Big move by China though – they banned banks from using Bitcoin that year.
In 2014, Bitcoin experienced significant fluctuations. It soared to $1,000 in early January but plummeted to $111.60 by February 21, marking a nearly 90% drop. This instability was largely due to issues at Mt. Gox, a pioneering cryptocurrency exchange, which halted withdrawals and eventually declared bankruptcy, losing 744,400 bitcoins belonging to its users.
Bitcoin then rebounded sharply, reaching $593.10 just five days later, an impressive fivefold increase. However, for the remainder of the year, its value gradually decreased, closing at approximately $318.
2015 began with a downturn for Bitcoin, but the year was mostly characterized by a steady upward trend, concluding at around $430. This period also saw the adoption of the official Bitcoin B symbol in November.
The first half of 2016 continued the trend of relative stability and consolidation in Bitcoin’s price. By late May, the price began to rise, reaching $700 by mid-June. After a brief dip, the price surged again towards the end of the year, crossing $700, then $800 and $900, and flirted with $1,000 as the year concluded. This momentum carried into early 2017, marking a significant year for Bitcoin as it gained widespread recognition.
In 2017, Bitcoin’s value fluctuated between $1,000 and $1,200 initially, but by late April, it had begun a steady climb. Despite a brief dip below $2,000 in mid-July, the price quickly recovered, surpassing $4,000 by mid-August and continuing to rise sharply. Retail investors significantly contributed to this surge. By November, Bitcoin had crossed the $7,000 threshold and continued its meteoric rise, reaching over $19,000 in mid-December before closing the year at $13,850.
However, after the explosive growth of 2017, 2018 saw a decline, with Bitcoin’s value falling significantly throughout the year, concluding at $3,709, a 73% drop from the beginning of the year.
2018-2020: Bitcoin’s Remarkable Comeback
In 2019, Bitcoin struggled for direction, oscillating around $4,000 for the first few months before breaking through in April and climbing to $5,000. It continued to climb, reaching $13,000 in June before falling back. By the year’s end, it was valued just under $7,200.
2020 began with a resurgence for Bitcoin, breaking above $10,000 within six weeks. However, the initial COVID-19 pandemic wave led to market downturns, and Bitcoin’s value fluctuated, dropping over 39% in a single day on March 12. Nevertheless, it recovered and closed the year strongly at $28,949.
January 2021 – Until Now: Bitcoin’s Resilient Journey Through Challenges
In 2021, Bitcoin started energetically, peaking above $64,000 by mid-April. This rise was driven by continued liquidity from the Federal Reserve, fueling optimism in both crypto and stock markets. However, regulatory pressures from China, including a ban on financial institutions conducting cryptocurrency transactions, caused a significant drop in Bitcoin’s value, losing over 50% in a few months.
Despite this, the currency rebounded, crossing $60,000 in October and reaching an all-time high of $68,789 on November 10, 2021. Late in the year, the Federal Reserve’s tapering of bond purchases and increasing inflation rates caused a downturn in riskier assets, including cryptocurrencies.
This trend continued into 2022, with Bitcoin’s value fluctuating around $40,000. Aggressive interest rate hikes by the Fed further impacted the value, and by mid-2022, Bitcoin had established a new trading range around $20,000, later dropping below $16,000. The price saw a resurgence in 2023, gaining over 50% and trading around $26,000 by mid-June, despite increased scrutiny from the Securities and Exchange Commission and trading now in early Jan, 2024 at about $42,000.
Final Thoughts
To wrap it up, Bitcoin’s journey has been nothing short of a financial rollercoaster. It’s a tale of extreme highs and lows, marked by rapid growth, steep declines, and surprising recoveries. This period has highlighted not only the inherent volatility of cryptocurrencies but also their growing impact on the broader financial landscape.
Despite the challenges, including market downturns, regulatory pressures, and shifts in investor sentiment, Bitcoin has shown a remarkable ability to rebound and maintain a significant presence in the financial world. As you look to the future, the story of Bitcoin remains one of potential and unpredictability.