Bitcoin’s Price History
Bitcoin’s trading history has been one of the most unpredictable of any asset class. One bitcoin’s value rose from just over one cent to $0.091 in 2010 when the cryptocurrency’s first significant price increase occurred.
Since its launch, the cryptocurrency has experienced a number of highs and lows. Bitcoin’s price fluctuation can be explained by a number of factors, including the volatility of the currency itself.
The following are the most important takeaways.
Bitcoin’s trading history has been turbulent and erratic since its inception.
Since its inception, the value of Bitcoin has fluctuated dramatically.
While Bitcoin’s value continues to rise and fall, so do the factors that affect it.
Even though it’s still a cryptocurrency, investors are using Bitcoin to store value and protect themselves against inflation and market volatility.
History of the Bitcoin Price
A look at the price of Bitcoin throughout time
Investors’ excitement and unhappiness with Bitcoin’s potential alternatively reflect on the currency’s price swings. After the financial crisis of 2008, the unknown Bitcoin creators, known only as “Satoshi Nakamoto,” created the digital currency as a method to bypass the conventional banking system. 2
As a medium of exchange, cryptocurrencies like bitcoin and ethereum gained popularity, and traders started to speculate on whether or not their value would rise or fall. A growing number of investors began using Bitcoin as a tool to hold assets, produce wealth and protect themselves from inflation.
Investors and traders wagering on an ever-increasing price of Bitcoin were the primary cause of the price volatility. A new chapter has begun in the pricing history of Bitcoin. Bitcoin’s popularity started to wane in January 2022. Price of 3 BTC It will be May 12th, 2022
The following is a brief history of Bitcoin:
When Bitcoin was first established in 2009, the currency had a value of zero. Priced at $.08.1 on July 17th, it has now risen to $.091 today. In only three months, Bitcoin’s price has risen from $1 to $29.60, a 2,960 percent increase from April 13, 2011. 4 After that, the cryptocurrency markets went into a dramatic downturn, with the price of Bitcoin reaching a low of $2.05 by the middle of November. 5 Prices increased from $4.85 on May 9 to $13.50 on August 15.6 of the following year.
For the most part, 2012 was a quiet year for Bitcoin, but the cryptocurrency’s value soared in 2013. Trading at $13.28 at the beginning of the year, it rose to a high of $230 on April 8 before falling down to $68.50 only a few weeks later.
After trading at $123.00 in early October, the price of Bitcoin soared to $1,237.55 by the end of the month and then plunged to $687.00 only three days after that!
8 Throughout 2014, Bitcoin’s value plummeted to a low of $315.21. 9\s2016–2020
Over the course of the year, prices gradually increased to over $900.
10 2017 was a year in which Bitcoin’s price fluctuated between $1,000 and $2,000 before soaring to $19,345.49 on Dec. 15. Some of the world’s leading financial institutions started creating their own cryptocurrencies in an attempt to compete with Bitcoin.
It took two years for Bitcoin’s value to stabilize, with occasional spurts of activity. Prices and trading volume jumped in June 2019 as the price of bitcoin surpassed $10,000 for the first time in history. On December 12, it had dropped to $6,635.84.12
The COIVD-19 outbreak caused the economy to shut down in 2020, and Bitcoin’s price surged. Bitcoin was valued at $6,965.72 at the beginning of the year. The Ebola shutdown and following government initiatives fueled investors’ anxieties about the global economy, which in turn drove Bitcoin’s rapid climb. On November 23, the price of a Bitcoin was $19,157.16. In December 2020, Bitcoin’s price was just shy of $29,000, an increase of 416 percent from the beginning of the year. 13
The price of Bitcoin surpassed $40,000 on January 7, 2021, little than a month after shattering its 2020 price record. Coinbase, a cryptocurrency exchange that went public in mid-April, pushed Bitcoin’s price up to above $60,000. 14 On April 12, 2021, Bitcoin hit a high of $63,558 thanks to institutional investment. 15
It was in the summer of 2021 that the price had dropped by half to $29,796. In September, prices rose to $52,693 before plummeting to $40,710 two weeks later due to a significant decline. 16
A new all-time high of $68.789 was hit on Nov. 10, 2021, before Bitcoin closed at $64,995.
17 As investors continued to worry about inflation and the advent of a new COVID-19 variation, Omicron.18, Bitcoin plummeted to $46,164 in mid-December 2021.
It was only in March of 2022 that Bitcoin’s closing price reached a peak of $47,445 before it started to plummet even farther. As of May 11th, Bitcoin has fallen below $30,000 for the first time since July 2021. 19
From November 2021 to May 2022, Bitcoin’s price movements resembled those of the stock market, indicating that the market was treating it as a stock at that time.
How Many Factors Affect Bitcoin’s Value?
The price of Bitcoin and other cryptocurrencies fluctuates based on supply and demand and the perception of value. You can’t get people to pay you for Bitcoin unless they feel the currency is worth that much.
Only 21 million Bitcoins will ever be generated by design.
21 if demand maintains the same or grows, the higher the price of Bitcoin will be the closer it goes to its limit
Mining software and gear generate bitcoins at a predetermined pace. In order to slow down the production of coins, this pace is halved every four years. 22 As long as Bitcoin’s popularity grows, supply and demand dictate that its price will climb. If this holds true, the price of Bitcoin will rise. There will be more supply than demand if Bitcoin becomes less popular and less sought after, hence its price should decline unless it retains its worth for some other reason.
The COVID-19 epidemic has shown that Bitcoin’s price may be affected by economic factors.
In addition to supply and demand, the price of Bitcoin is influenced by the fact that it has become a tool for investors and financial institutions to hold value and make returns on their investments. Derivatives are being exchanged by investors to influence Bitcoin’s price, which in turn affects the whole market. It is reasonable to assume that the price of Bitcoin will fluctuate in response to various types of investor mood, such as rational exuberance, irrational exuberance, and even panic and terror.
The price of Bitcoin may be affected by the performance of other cryptocurrencies as well. A growing number of cryptocurrencies are being accepted as legitimate means of payment and money by governments, financial institutions, and retailers. Consumers’ and investors’ perceptions of the value of Bitcoin and other cryptocurrencies will either decline or climb depending on whether or not consumers and investors feel that other cryptocurrencies are more valuable than Bitcoin.
It takes how long to mine a single bitcoin?
The degree of difficulty increases or decreases. It varies on the mining software, hardware, and energy resources available, but the average time it takes to locate a block is roughly 10 minutes.. 23
Yes, but is it worth the risk?
The primary purpose of Bitcoin is to be used as a medium of exchange for the transfer of value. Although it has gained popularity among investors and traders, the high degree of volatility in its price means that it comes with a high level of financial risk. Before purchasing Bitcoin as an investment, it is recommended that you speak with a qualified financial counselor about your specific situation and desired outcomes.
On the current market value of one bitcoin, how much is it?
On Nov. 8, 2021, Bitcoin’s price rose to a record high of $67,566.83 (17).
What Was the Lowest Bitcoin Price?
In July of 2010, the price of one bitcoin was $.09.
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