Among several well-known investment assets, Bitcoin is one of the most volatile in trading history. At first, the price of Bitcoin jumped from a few cents to $0.09 US in 2010. Since then, the crypto asset has gone through many price movements, both soaring and plummeting. These price swings reflect investors’ enthusiasm and dissatisfaction with the asset at certain times. Bitcoin’s creator, Satoshi Nakamoto, designed Bitcoin for everyday transactions and a solution to the traditional banking infrastructure system that was destroyed by the 2008 financial crisis.
Crypto assets gained major traction as a medium of exchange for electronic transactions. They also attracted traders, beginning to notice the price volatility, to jump in and trade crypto assets. Over time, investors have turned to these Bitcoin assets to store wealth, earn profits from trading, and become a hedge against inflation. Many institutions have started using Bitcoin as a tool for their investment instruments.
History of the Bitcoin Price Movement
The price movement of Bitcoin depends on investors and traders who risk the price in the market in trading. However, the history of Bitcoin’s price changed once again in January 2022, whenin the market price crashed. For more details, let’s follow the history of Bitcoin’s price movement since its launch in 2009.
WhenBitcoin was first introduced in 2009, the price started at zero. In July 2010, the price increased to 0.09$ US and continued to rise until April 2011, going from $1 US to $29.6 US in June 2011 within three months. Then there was a sharp recession in the crypto market which caused Bitcoin’s price to plunge to $2.05 US in November 2011. The following year, the price of Bitcoin increased again from $4.84 US in May 2012 to $13.50 US in August 2012.
The year 2012 proved to be one of the most volatile years for Bitcoin. But in 2013, the price of Bitcoin increased again. It started at $13.28 US at the beginning of the year and reached $230 US in April 2013, followed by a drastic price drop to $68.5 US in July. In October 2013, the Bitcoin trading price increased again to $123 US, then jumped dramatically to $1,237.55 US, plunging to $687.02 US three days later. In 2014, the Bitcoin price declined, finally reaching $315.21 US in 2015.
In 2016, the price of Bitcoin slowly increased to exceed $900 US by the end of the year. In 2017, the price increased from $1000 US to $2000 US in mid-May until skyrocketing to $19,345.49 US in December. This drastic change brought curiosity from investors, governments, economists, and the world community until many parties began to create other crypto assets to compete with Bitcoin.
The price of Bitcoin continued to move steadily in 2018 and 2019 with little volatility. For example, in June 2019, Bitcoin’s price passed the $10,000 US mark before decreasing to $6,635 US. In 2020, the world economy experienced a decline due to the COVID-19 pandemic and, once again, the price of Bitcoin experienced drastic changes. In 2020, the price started at $6,695.72 US; by the end of November 2020, it had jumped to $19,157.16 US,finally hitting $29,000 US in December 2020.
In 2021, the asset took only one month to beat its 2020 record high, reaching $40,000 US in January 2021. In mid-April, Bitcoin reached another record high of over $60,000 US and continued to rise to $63,558 US. A 50% price drop followed this record in July 2020, when it fell to $29,796 US. However, by mid-December 2021, Bitcoin reached a record high of $69,789 US, only to fall to $46,164 US at the end of the year.
Between January and May of 2022, the price of Bitcoin continued to slide; by mid-March the price was $47,445 US, dropping to $28,305 in May. This was the lowest price below the $30,000 US mark since July 2021. The recession in the crypto market made this asset decline further until it finally reached $23,000 US. Then recently, after the market upheaval caused by the FTX crypto exchange, the price of Bitcoin fell again to $17,000 US.
What affects the price of Bitcoin?
Supply and Demand
Like any currency, product or service in a country or economy, the price of Bitcoin depends on supply and demand. If people believe Bitcoin is valuable in a market, they will buy it. More so if there is a possibility of future price increases. Given that there are only 21 million pieces of Bitcoin, as the supply runs out, the value will increase as long as market demand continues to grow or stabilize. If the market demand decrease, then an excess amount of Bitcoin will result in a price decline.
Bitcoin Security System
Another factor that affects Bitcoin’s price is also the reason for the movement of demand and the amount of supply on the market. Bitcoin has become a store of value that generates profits for investors and other financial institutions. As a result, speculation on the security of the Bitcoin system affects investor sentiment. Security is one of the primary values for digital assets; if security is maintained, investors will be more trusting and interested in buying.
Crypto Market Competition
The price of other crypto assets also affects the price of Bitcoin. Several cryptocurrencies have grown rapidly and received attention from the public, increasing competition. In addition, if consumers and investors believe other crypto assets are more valuable, market demand will decrease and bring the price down. As long as market demand is stable, the price of Bitcoin will also be.
What is Bitcoin’s Highest Value?
In November 2021, Bitcoin reached a high of $68,689 US.
What is Bitcoin’s Lowest Value?
The lowest value of Bitcoin was $0.09 US when Bitcoin was first traded.
Is Bitcoin Good for Investment?
Bitcoin is a digital currency designed to be used for payment. Investors and traders are starting to use it as an investment tool because of its high price growth. Bitcoin’s volatility is good for short-term trading as you can profit from the difference in value in the short term. At the same time, the limited number of Bitcoins and the growing adoption of Bitcoin around the world make it worth considering as a long-term investment.