Bitcoin has been in the buzz for an extended period in the finance sector. The novel idea brought a revolution globally by digitizing the currency. This revolution was set forth due to the groundbreaking invention by an anonymous group of people who claimed themselves to be Satoshi Nakamoto in 2008.
The transactions made via bitcoin are verified using various network nodes with the help of cryptography and are further recorded in distributed ledgers named blockchain. The bitcoin price is a highly volatile subject as it fluctuates and shows a different pattern every year. The first documented significant rise in price was in 2010 when its value paced up from a fraction to $0.09.
History of Bitcoin prices
Historically, the bitcoin price has fluctuated depending on dealings by mega investors and traders, also known as “whale” in the crypto market. However, upon further analysis of the current scenario, it is no secret that the bitcoin price has been declining, and with it, so are the prices of all other crypto currencies.
2009 to 2015
The initial price during the launch of bitcoin in 2009 was zero. An increase in the price was observed in 2010, becoming $0.09. It further increased to $1 and reached its peak at $29.60 in the year 2011. However, the market soon experienced an intense form of recession. As a result, the price dropped to $2.05 by November of 2011.
The unfortunate year of 2012 showed a substantial downfall, compensated by the solid gains in 2013. The bitcoin price reached its new peak of $230 in April 2013 but soon experienced a recession in July. By the time 2015 started, the new price was $315.21 after various increases and decreases.
2016 to 2021
Prices were observed to climb the charts to reach over $900 by the time 2016 ended. The price floated around $1000, reaching a whopping $2000 in May. The upscale did not stop here. It further soared to a new height of $19345.49 in December. This invited many eyes from all over the world towards bitcoin.
The price continued moving sideways in 2018 and 2019 until it finally experienced a significant blow and reached $6,635.84 by December 2019. When the pandemic hit globally in 2020, the economy experienced a rapid downfall. The year started with a price of $6,965.72 and kept accelerating to keep the global economy moving.
By November, the bitcoin price reached $19,157.16, subsequently going to $29,000 by December 2020. This trend showed a 416% increase since the year started.
2021 to Present Scenario
The 2020 price record was smashed in 2021 by exceeding $40,000 by January. The prices experienced an all-time high of $60,000 when a cryptocurrency exchange named Coinbase became public. Bitcoin soon peaked at $63,558 in April 2021.
However, the price dropped by 50% to $29,796 in July. The bull run commenced in September when the price started touching $52,693. Another all-time high was set in November 2021, hitting $68,789.
By the middle of December 2021, the price degraded to $46,164. Once again, fluctuations in price were becoming evident when the Omicron variant of COVID-19 emerged. Therefore, from January to May 2022, the price started declining gradually, reaching $28,305. However, the prices plunged in June, hitting a new low since December 2020.
Conclusion
The price of Bitcoin has never been constant. The highly fluctuating nature of this digital form of currency has always made it a risky business. Therefore, it is imperative to discuss the factors affecting the bitcoin price. These factors are supply-demand, bitcoin securities, and rising competition in the field of cryptocurrency.
