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Here is the brief price analysis and history of Bitcoin from the years 2009 to 2023
Bitcoin's price has been on a roller coaster since its inception in January 2009, but the long-term direction has been higher - "up and to the right," as they say. The introduction of Bitcoin signaled the start of the cryptocurrency era, but it took some time for the general public to become aware of it.
Nonetheless, it looks that cryptocurrency, specifically Bitcoin, has emerged as the most exciting trading opportunity in well over a decade. Although bitcoin trading has generated millions of dollars, many traders would have been better off simply riding the wave, or "HODLing," as many long-term bullish owners have done.
Bitcoin has had bouts of sharp declines despite its long-term ascent. The most recent occurred in November 2021, when the likelihood of increasing interest rates and decreased market liquidity caused Bitcoin's price to fall significantly.
Bitcoin was released in the months following the global financial crisis devastation of economies. Early advocates lauded the currency's potential to move monetary policy away from the power of governments and central banks and towards a self-governing system.
The maximum number of coins that can ever be minted in Bitcoin is 21 million. Despite the fixed supply, the coin's value can rise due to increased demand. As a result of these considerations, investors have flocked to the market to profit from the anticipated price increase.
Bitcoin's price is infamously influenced by sentiment. Bitcoin rises amid utopian promises as the market enters its "greed" phase, and investors ignore the downsides of a cash-free asset. In the "fear" phase, sellers drive down the price of Bitcoin in response to unfavorable news or a general market gloom.
Despite all of the speculation, it's crucial to keep in mind that using Bitcoin for regular purchases might be challenging. Major corporations that had implemented Bitcoin payment mechanisms have quietly abandoned them. Now that the market has changed the narrative, Bitcoin is no longer seen as a means of commerce but as a store of wealth, or "digital gold." However, compared to Bitcoin's brief history of a few decades, gold has a few thousand years of experience as a store of wealth.
Here are some of the trends that have caused the price of Bitcoin to climb and decline over time.
Bitcoin prices over time:
January 2009 – July 2013: Bitcoin got started
August 2013 – December 2017: Bitcoin got drawn in the public
January 2018 – December 2020: Bitcoin recovered and soared
January 2021 – January 2023: Bitcoin got hit by regulations and rising rates
Bitcoin returns by year
January 2009 – July 2013: The creation of Bitcoin attracted techies
The New Liberty Standard Exchange first registered a Bitcoin-to-dollar transaction in late 2009. The first price that was mediated through an exchange was US$0.00098 per bitcoin, as users on the BitcoinTalk forum exchanged 5,051 bitcoins for US$5.02 using PayPal. Consequently, the price was around one-tenth of a cent.
August 2013 – December 2017: Bitcoin enters the public consciousness
After beginning the month for US$214, Bitcoin doubled to almost US$435 in just 14 days. It nearly tripled from there by the end of the month, reaching more than US$1,300, before completing the year at US$805, a dramatic downturn but still an increase from just U$641 a few weeks earlier. In the latter part of the year, the People's Bank of China restricted financial institutions from using bitcoins.
January 2018 – December 2020: Bitcoin bounces back and rises even higher
After the collapse of 2017, Bitcoin spent the bulk of 2018 in a downtrend, dropping throughout the year following a brief spike at the start of the year. Bitcoin has dropped about 50% from its start-of-the-year price after the first quarter. It fluctuated between US$7,000 and US$9,000 for the majority of the year before ending 2018 at US$4,709, down 73% for the year.
January 2021 – January 2023: Bitcoin is under siege
Following what can only be characterized as an exciting close to 2020 for Bitcoin, the digital currency began 2021 with a bang. Following a robust first quarter, the cryptocurrency surged to a high of more than US$64,000 by mid-April. The Federal Reserve's promises of seemingly endless liquidity fueled market euphoria in both crypto and equities.