The start of 2022 saw bitcoin investment nearly double in value from January 2021, capping a year that saw cryptocurrencies experience a meteoric rise in popularity. But before the first month of 2022 was up, bitcoin had almost completely erased its gains from the year before, falling to below $33,000 in January. This got many people worried and they started wondering if they made the right decision to invest in cryptocurrency.
The trouble with cryptocurrencies, though, is that their prices might fall by 15% or more overnight or in a matter of hours. They frequently do. With a few notable exceptions, such as stablecoins, cryptocurrency is characterized by extreme volatility.
A Comprehensive Guide to Understanding Bitcoin Price History
This comprehensive history of bitcoin prices will explore the cryptocurrency from its inception to the present day, looking at all of the reasons why we need to pay attention to it as an investment and what it means for our future economy; read on to know more in detail!
- The beginning (2009)
It was the first of its kind in history that the Bitcoin currency (BTC) and the Bitcoin blockchain were both created at the same time. Many experts have repeatedly said how blockchain technology had affected the value of BTC. And since there exists a blockchain there is a currency. The first price of Bitcoin was 0. The bitcoin white paper, which was notably published by the originator, Satoshi Nakamoto, to describe how the new technology would operate, is well-known.
- Following years
In the summer of 2010, Bitcoin saw its first “huge” jump. In the spring, the cost was only a tenth of a cent; by July, it was $0.09. Except for a small number of specialized tech specialists and financial aficionados, very few people had enough knowledge of bitcoin to purchase it. The cost was approximately $0.10 by October 2010.
In April 2011, Bitcoin reached the $1 mark, beginning its initial “bull run” phase. It increased by nearly 3,000% over the following three months, peaking in June 2011 at between $29 and $32 (depending on the source). The cost again peaked at $2 in November 2011.
In 2013, when it started to gain more attention outside of a specialized audience of techies and enthusiasts, Bitcoin had a successful year. In Vancouver, the first Bitcoin ATM in the world was set up, enabling customers to exchange fiat money for cryptocurrency. Bitcoin’s cost had already surpassed $20 by the end of January. From then, as interest grew, the momentum grew.
Early in March, Bitcoin had already quadrupled once more, reaching a price of over $40. It reached $50 a few weeks later, then $60 a few days later. The following day, the price increased to $70. Bitcoin has astonishingly surpassed $100 by the beginning of April 2013. Then, a jump of $230 occurred eight days later!
- The first downfall
It was after December 2013 that bitcoin finally saw a downfall. The prices kept going down. This was when many people started noticing bitcoin and gave rise to the trading of cryptocurrencies as we see today. During this time when the prices were seeing a steep decline, many believed that they would increase shortly and hence bitcoin grew as an asset class. This continued till 2018.
- After the downfall
After 2018 once people started trading again at cryptocurrency exchange platforms, we saw volatile bitcoin can be. After the downfall, many people heard stories of how those who bought bitcoin the first time around had benefited and hence this attracted many more users to the trading of bitcoins. However, life had other plans we were hit with the pandemic. While bitcoin suffered a significant loss it was not enough to throw people off its scent.
Currently, bitcoin has been at a standard price fluctuating only within the expected 25% of fluctuation. Finally, at the end of the day, when we come to talk about the market price fluctuation of cryptocurrencies, no one can ever be sure.
Therefore, this was the price history of how bitcoin grew. Essentially to be able to trade in cryptocurrencies you also need to choose a platform.