Bitcoin Price

You have probably noticed that the Bitcoin price fluctuates a lot and often leaves one with questions like “Will Bitcoin go up?” “Why is Bitcoin dropping?” But take a look at the price development since Bitcoin came into the world in 2009. In the long perspective, the Bitcoin price has only moved in one direction – up. In 2010, the exchange rate was between $0.0008 and $0.08 for 1 Bitcoin. Were you far-sighted or lucky enough to buy Bitcoin in 2010 for a total of $25 and keep them? If so, congratulations dollar billionaire. It’s a fact that no other asset class has delivered returns near Bitcoin over the past ten years. That’s why the Bitcoin evolution has left finance analysts stunned over and over again.

How much is 1 Bitcoin worth?

What’s Bitcoin worth today? In the price widget below you can see the current price of 1 Bitcoin and the price development over different timeframes. There may be variations in the Bitcoin price as Bitcoin is traded on several independent exchanges all over the world.

Will the Bitcoin price continue to rise?

Bitcoin is still a relatively young project, which is reflected in large price swings. The limited amount of Bitcoins (21 million) and the increasing difficulty level for miners suggest that the price will continue to rise. Furthermore the adoption rate has exploded. An increasing number of people regard Bitcoin as “digital gold”. They see it as a “store of value” and thus as a hedge in these uncertain times. Many prominent investors including Paul Tudor Jones now believe that Bitcoin will most likely retain or increase in value.

The increased global uncertainty and risk associated with Fiat currencies, stocks, and bonds have sparked the search for alternative investments. Not only are investors looking for returns, but also for possible hedges against losses. However, investing in cryptocurrencies, including Bitcoin, is still associated with significant risks. Crypto technologies are evolving at a tremendous pace, so they can quickly become obsolete. Initiatives within legislation and regulation of cryptocurrencies can of course also affect the price development including the price of Bitcoin.

However, the uncertainty in the world economy and the increased risk of the traditional asset classes make Bitcoin a growingly less uncertain investment. Proponents of Bitcoin see it as a possible solution, perhaps the only solution, to an impending global recession. This is due to its  “store of value properties” and because Bitcoin is not affected by government fiscal policies. No matter how much money the central banks print and how much the debt grows, it does not affect the amount of Bitcoin. In this way, the proponents believe, Bitcoin provides global fiscal stability.

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Bitcoin history

From Bitcoin’s inception until today the asset has generated 50.000.000% gains dwarfing all other assets on the planet. Even though any investor who has owned the asset more than 3 years has a positive return, Bitcoin remains a controversial asset. The Bitcoin price always gets attention after big moves both up and down. When the price drops significantly the bears and Bitcoin doomers step in and declare Bitcoin “dead” and when the price grows parabolically the bulls and so-called “moon boys” make their case that the Bitcoin price will be in the millions of dollars per Bitcoin in the future. Bitcoin price predictions keep coming from analysts, Bitcoin evangelists, youtubers and others on a daily basis which makes it difficult for any layman to decipher the market. That’s why in this article we will go all the way back to the start, so you can make up your own opinion. 

Bitcoin was invented by the mysterious Satoshi Nakamoto, who registered the domain Bitcoin.org on August 18, 2008. On January 3, 2009, Satoshi Nakamoto completed the first on-chain peer-to-peer transaction. He sent 50 Bitcoin of which 10 were sent to Hal Finney and the remaining 40 to Satoshi himself. Until October 2009, Bitcoin was exchanged between cryptography enthusiasts, who sent Bitcoin to each other on a hobby level and there was no set price. On October 5, 2009, Bitcoin was priced at 1309.03 Bitcoin for $1, equivalent to $0.00076 per Bitcoin on New Liberty Standard.

Bitcoin evolution

From 2009 until today, Bitcoin has gone through a massive evolution. The Bitcoin price has been characterized by large fluctuations with meteoric rises and massive falls – sometimes in the form of so-called flash crashes. During its evolution Bitcoin has so far undergone 3 parabolic growth cycles, where the price has risen sharply in a period followed by large declines. Parabolic growth occurs when an asset moves in a strong bullish channel while the market sentiment becomes stronger and the growth as a result gradually steeper. The reason for the parabolic growth is an increasingly irrational buying behaviour and massive speculation as the price rises.

Silk Road as a catalyst for the 2011 bubble
Bitcoin evolution - Source: BTCUSD on TradingView.com

On March 17, 2010, Bitcoin was registered on the now-defunct Bitcoinmarket.com at a price of $0.003 per Bitcoin. During July 2010, the price reached $0.08 per Bitcoin – an increase of over 2600% in just over 3 months. In February 2011, the price of a Bitcoin reached $1 for the first time and on July 8, 2011, the price peaked at $31. The increase is attributed by many to being caused by the black market Silk Road’s growing popularity and increased demand for Bitcoin as a result. In December 2011, however, the bubble burst, and Bitcoin fell more than 93% to $2. The main reason for this crash was that the then leading cryptocurrency exchange Mt. Gox was hacked, resulting in panic and fire sales in the market.

 Cyprus crisis triggers Bitcoin’s first big bull run

After the first bubble burst and the drastic price drop to $2 had occurred, the price started to rise slowly again. In the period from July 3, 2012, to August 17, 2012, Bitcoin rose from $6.4 to $15.4 and immediately fell to $7.5. The price first surpassed $15 again in early 2013. The spark that ignited this bull run was the financial crisis in Cyprus. Cyprus, as a result of the recession triggered by the US subprime mortgage crisis, had to spend a rescue package of 16 billion Euro. The precondition for receiving the aid was that the Cypriot central bank should tax bank deposits of more than 100,000 Euros and thereby recover a total of 6 billion Euro.

Up to a third of all bank deposits came from outside the EU, especially from wealthy Russians. The crisis sparked speculation and attempts to protect fortunes through investing in Bitcoin. The notion that there is no alternative in the financial market that is as secure as having the money in a bank account was strongly challenged and confidence disappeared. Suddenly, Bitcoin appeared more relevant than ever since it is not controlled by any state or bank, which is why it cannot be confiscated either. Immediately after the announcement of the Cypriot aid package, the price of Bitcoin rose from $48 to a preliminary peak on April 10, 2013 of $266. In November of the same year, the price for the first time went above $1000 per Bitcoin and closed the year on 31 December 2013 at $806. The increase for the year totalled at $792.5 or 5970%.

Mt. Gox bankruptcy and Bitcoins abysmal decline
Cyprus bailout - Source: BTCUSD on TradingView.com

2014 started positively for Bitcoin, but the closing price of $1,015 on January 5, 2014 also became the peak for Bitcoin that year. On February 7, the leading Bitcoin exchange Mt. Gox halted all Bitcoin withdrawals. Fear started to spread as a result of customers’ problems with getting their receivables paid out. The Bitcoin price opened at $827 but had lost $132 when the day was over and closed at $695. On February 28, Mt. Gox filed for bankruptcy protection from creditors following claims that hackers had stolen 744.000 Bitcoins from the exchange. In the period that followed, the price continued to fall reaching a low of $363

Mt. Gox bankruptcy - Source: BTCUSD on TradingView.com
Mt. Gox bankruptcy - Source: BTCUSD on TradingView.com

The stagnation phase

Following the major boom of 2013 and the fall of Mt. Gox a year later, Bitcoin traders had nowhere to go and Bitcoin entered a short bearish season. 2015 began with Coinbase raising $75 million in an investment round that surpassed any previous funding round for a Bitcoin-related firm.

In the same month, investors faced another exchange crisis as Bitstamp announced that it would stop all trading and turn the exchange offline. As the main reason, the team at Bitstamp reported the investigation of a hack that resulted in 19K BTC being stolen from the exchange. At the time, the amount was valued at $5 million.

By January 9, Bitstamp resumed trading and revealed that it implemented several security measures while claiming that all customers would retain their crypto funds. However, the exchange’s statements were not reassuring enough as Bitcoin reached a new low less than a week later. On January 14, 2015 Bitcoin bottomed at the price of $152. The leading cryptocurrency continued to range between $200 and $310 for most of the year before igniting a new rally in September.

By November, Bitcoin already reached $500 only to fall almost 50% in value during the month’s second week. But soon enough Bitcoin began a rally that would lead to the great bubble of 2017, retracing several times but staying bullish.

As seen in the graph below, following the events of Mt. Gox hack, the price of Bitcoin remained relatively stable from 2014 till 2017 with no significant up or down fluctuations. The price stayed below $1,000 for the major portion. Although attention to Bitcoin’s price faded away, the cryptocurrency world didn’t stop developing. July 30, 2015, marked the entry of the 2nd biggest player in the cryptocurrency world in terms of market capitalization as of now, Ethereum.

The stagnation phase - Source: BTCUSD on TradingView.com
Mt. Gox bankruptcy - Source: BTCUSD on TradingView.com

2016 Mini bubble

At the very start of 2016 Bitcoin reached a bottom which would mark a yearly low. Falling to $367 in the middle of January, the digital asset slowly grinded higher for the next several months. Despite having the Japanese government legally recognizing Bitcoin as a form of tender in March, investors did not go on a buying spree.

Nevertheless, bulls still resumed the rally for that year. By the end of May, investors started to massively buy Bitcoin resulting in a drastic price surge. By June 17, the asset reached a value of $767. But just as with the previous price explosion, the cryptocurrency market retraced and continued to trade sideways until August.

In August the price took a hard hit as hackers attacked the leading crypto derivatives exchange Bitfinex and stole 120,000 BTC. The total sum was valued at $60 million making it one of the largest hacks in the history of Bitcoin. The price of course severely declined over a short time period and plunged to a low of $465 on August 2, 2016.

The panic caused by the hack did not last long as Bitcoin only went on to resume what it had previously started. 

2017 – Bull run

2017 was a great year for Bitcoin with an almost twentyfold price increase. January 2, 2017, saw Bitcoin at $1,011. The start of the year also saw some regulatory tightening around the digital asset as the People’s Bank of China announced to keep a strict oversight over its leading Bitcoin exchanges. Although this news was expected to deliver a hard blow to the asset, Bitcoin maintained its price. The imposition of new trading fees on 3 big exchanges; BTCC, OKCoin, and Huobi saw the trading volumes drop.

2017 Bitcoin bull run - Source: BTCUSD on TradingView.com
2017 Bitcoin bull run - Source: BTCUSD on TradingView.com

ETF proposals flood the SEC

March 2017 saw the Bitcoin exchange-traded fund proposal getting shot down by the U.S. Securities and Exchange Commission. The proposal was put up by the famous Winklevoss twins back in 2013. The lack of approval from the SEC made the market react very badly. On the day of this event, the market dropped nearly 30%. Despite the fall, recovery took place and the asset surpassed $1,000 yet again.

Despite the negative outlook shown by the SEC in regard to the approval of a crypto-related ETF, several firms started filing in for the approval of a Bitcoin ETF. The focus of all these proposals was very-tightly linked to cryptocurrency futures.

The summer of ICOs

From May till September, it was the summer of breaking all-time highs and increased initial coin offering (ICO) activity. May 1 saw Bitcoin set its new record. The end of May saw Bitcoin cross the $2,000 landmark for the very first time. Just weeks later, $3,000 was up. The train of Bitcoin had just caught super speed. But it was a bumpy track. There were steep inclines accompanied by sharp declines.

Top 2017 ICOs - Source: Autonomous NEXT analysis
Top 2017 ICOs - Source: Autonomous NEXT analysis

Famous analysts step in

As the Bitcoin price became the center attention in the market, prominent Wall Street analysts started stepping in to predict price movements. Notably, Sheba Jafari from Goldman Sachs predicted a rush past the $4,000 mark. The subsequent weeks and months saw more and more prominent analysts stepping in.

Happy-sad September

Within the first week of September 2017, the price shot past the $5,000 for the first time. But only two days later, the price started dropping in hundreds. Slowly, a reversal of all the summer gains took and place and September 14 saw Bitcoin fall below $3,400. The next day it retraced to under $3,000. The happy start met a sad end.

The October recovery

The dread that September brought over to the Bitcoin world ended in mid-October as the digital asset slowly recovered past the $5,000 mark. The month also saw the closure of the 3 big Chinese exchanges as a worldwide crackdown took place on ICOs. Despite all the negative news and the crypto world being perceived as very unsafe, the bullish sentiment with Bitcoin stayed and the launchpad was set for November and December. October and November saw Bitcoin speed past the $6,000 and $7,000 mark.

December blow-off top

Riding on a steep wave of parabola, Bitcoin hit a new all-time high of $19,783 on 17th December. These were the times where people made, and lost fortunes depending on their entry and exit in the market. The new top at $19,783 was quickly followed by a severe drop back to $13,000.

2018 – bear market returns

Apart from a rebound back to $17,000 at the start of January 2018, the price spiralled downwards. The journey from there on for the rest of the year is largely downwards with a few bumps here and there.

On February 5, Bitcoin fell 50% in two weeks and hit $7,000. Investors gradually sold their cryptocurrencies throughout the year, resulting in constant selling pressure.

None of the ETF proposals to SEC saw the light of the day and the approval were delayed again and again. 

The year ended with a dismal stay on the $3,946 on December 29, 2018.

2018 bear market - Source: BTCUSD on TradingView.com
2018 bear market - Source: BTCUSD on TradingView.com

2019 – the bottom is in

The day after April Fool’s day, bulls came back to show some strength for the first time since the 2918 bull run. As a result, Bitcoin increased from $4,000 to $5,080 in a single day.

Bullish demand went on until June 2019, a year which many believed to be the start of a new bull run. However, Bitcoin failed to surpass heavy resistance and fell instantly after touching $13,880 on 26 June. In July bulls attempted another push for higher highs but failed. Bitcoin fell to $9,300 in August and rose to $12,300 after only two weeks.

In December, Bitcoin finally found its bottom at $3,100. At the time, many investors were convinced the asset would continue to decline.

2020 – The best year since 2017

Even with the corona crash 2020 has proved to be the best year for Bitcoin since 2017. As investors faced the rise of the pandemic fear and anxiety grew. As a result, the Bitcoin price and markets in general crashed on March 12 with Bitcoin hitting a year bottom of $3,800 on Bitstamp the day after. Other exchanges have even reported prices as low as $3,400.

Quick recovery

The crash left investors confused as they faced the rise of a pandemic. With high uncertainty and fear that the crash may repeat in 2020, many were very fearful for the future of Bitcoin and the financial markets in general. However, the asset like the stock market made a v-shaped recovery and reached its pre-crash price level by May. In June Bitcoin finally set a higher high ending the bear market since the beginning of 2018.

V-shaped recovery - Source: BTCUSD on TradingView.com
V-shaped recovery - Source: BTCUSD on TradingView.com

Positive fundamentals

In October leading online payment processor PayPal announced that it would enable support for cryptocurrencies. Initially for U.S. citizens only, the company promised to expand the service to the rest of the world in 2021.

Several news reports of corporate investments, mainly by Square, MicroStrategy, and Grayscale, have further ignited the 2020 bull run. On November 5, bulls created a price surge that led to a price increase of close to $1500 in a single day.

After continued demand throughout November, Bitcoin set a new all-time high on November 30, reaching $19,857 topping the previous high of $19,783 from December 18. 2017.

Kicking of a new bull cycle

After the new all-time high Bitcoin corrected down to $17,564 over a period of 11 days. The asset grew parabolically throughout December, setting higher highs almost every day. In January Bitcoin reached its current price peak at $42,000 on January 8, 2021

New bull cycle - Source: BTCUSD on TradingView.com
New bull cycle - Source: BTCUSD on TradingView.com

Bitcoin’s highest price

Bitcoin is currently in a parabolic growth cycle setting new highs very often. The Bitcoin price has now surpassed the forty-thousand-dollar mark which is the highest of all the times. So far Bitcoin has been able reach higher prices in every bull cycle. Bitcoin’s highest price to date is $42,000 set on January 8, 2021.

What determines the Bitcoin price?

Bitcoin is a currency, an investment asset, a store of value asset, and much more. But what determines the Bitcoin price? Bitcoin is a cryptocurrency with a limited and predetermined supply and growing demand. That is the simple reason why – on a larger timeframe – the price has kept going up. Besides the increase in demand and decrease in supply, there are other factors that impact the price as well. Speculation, development, external events/news, and other factors can severely influence Bitcoin’s price and volatility.

Why is the Bitcoin price going up?

Bitcoin dropped all the way down to $3,400 in March 2020, so why is the price going up? Many factors including the halving event, which doubles the difficulty for miners to mine new Bitcoin, the macroeconomic environment with decreasing value of fiat currencies (Bitcoin is seen as a hedge against inflation), increasing adoption of Bitcoin and crypto in general and increasing interest from institutional and corporate investors including Grayscale, MicroStrategy, and Square.

Why is Bitcoin dropping?

Historically the Bitcoin price evolves in market cycles with parabolic price increases and large declines. It is noteworthy that the price at bottom of each bear market always has been higher than the top of the bull market in the previous cycle. Many investors who bought at the previous bull market top in December 2017 were very fearful when the price dropped to 85% to $ 3200 in less than a year. However, even their investment is also profitable today (2021). To answer “Why is Bitcoin dropping” you first of all need to look at the timeframe. If Bitcoin is dropping over weeks or even months, we are most probably in a bear market. If it’s dropping in a bull market it is most likely a correction. Any price level has a number of buyers and sellers and if there is more Bitcoins for sale at the current price point than what buyers are ready to buy, the price will drop.

How is Bitcoin price prediction done?

There are several ways to try to predict the Bitcoin price including looking at the fundamentals which concerns how positive the environment for Bitcoin is and technical analysis. One price prediction model which has become popular is the Bitcoin stock to flow model (S2F) which represents a future price prediction model created by an anonymous investor in March 2019. Believing that Bitcoin’s price is mainly affected by scarcity, the author created S2F to showcase future potential price levels.

By quantifying scarcity, the model predicts a price based on stock (size of existing supply) and flow (yearly production). According to S2F, Bitcoin’s price should drastically increase after a reward ‘halving’, an event in which mining rewards halve.

Bitcoin stock to flow model (S2F) - Source: BTCUSD on TradingView.com
Bitcoin stock to flow model (S2F) - Source: BTCUSD on TradingView.com

What will Bitcoin be worth in 2021?

Bitcoin price predictions will always be somewhat of a guessing game as there are many factors which can impact the price in both directions. If the financial markets take another hit due to the corona crisis it can impact the Bitcoin price too. Interestingly the Bitcoin price could in fact continue to go up as a result of the crisis and heavy printing as many investors believe Bitcoin to be a hedge against inflation. The founder of Morgan Creek Capital, Anthony Pompliano, recently said that he wouldn’t be surprised to see the benchmark cryptocurrency at a price point of $100,000 by the end of 2021. More bullish analysts expect prices to go up to $4-500,000. Market is full of all kind of analysts, bullish and bearish, with their own Bitcoin price prediction. Of course, you might still find a few analysts who believe the price will decline and even go to zero, but they are certainly becoming rarer.

Bitcoin's historical price

The Bitcoin price history is short yet depicts the rise of Bitcoin from zero value to becoming a hard asset on the radar of even the most conservative investors. Below you can find all major developments in bitcoin’s historical price and a short description of what was thought to cause each one.

EventDate & PriceAnalysis
Bitcoin’s launchJanuary 3, 2009

$0
Bitcoin was launched at a market value of $0 as the digital currency was not listed with a central bank or public exchange. Therefore, its value was arbitrary and users negotiated its value on forums such as BitcoinTalk.
The first Bitcoin exchangeMarch 17, 2010

$0.003
The launch of the first Bitcoin exchange - BitcoinMarket.com, put a price on Bitcoin and stimulated public interest in the cryptocurrency.
The first Bitcoin purchaseMay 22, 2010

$0.01
Laszlo Hanyecz was the first individual to use Bitcoin in a real-world transaction. He purchased 2 pizzas for 10,000 BTC which is equivalent of roughly $180 mill today (November 2020). May 22, is now known as “Bitcoin Pizza Day” and celebrated by Bitcoin fans all over the world.
The first significant Bitcoin price increase July 12, 2010

$0.008 to $0.08
This is the first phenomenal price increase for Bitcoin. The massive 10x growth in price was linked to a substantial increase in the number of Bitcoin users as a result of the Bitcoin upgrade to v0.3 and launch of the Bitcoin exchange Mt. Gox.
Bitcoin flash crashOctober 8, 2010

$0.1 to 0.01
Not long after Bitcoin passed the 10-cent milestone it dropped 90% to 0.01. One lucky buyer bought 100 Bitcoin for a dollar. The price quickly recovered and closed at $0.86, a gain of 28% on the day.
The Bitcoin exchange price exceeds 1 bitOctober 13 – November 7, 2010

$0.10 to $0.47
On October 13, the Bitcoin price exceeded 1 bit (10 cents) for the first time. The price increase was believed to be triggered by the launch of the first public miner, Open CL. A rally followed which topped out on November 7.
The first short trade Bitcoin transaction October 28 –November 6, 2010

$0.17 to $0.39
On October 28, 2010, the first short trade transaction of 100 coins between the users of nanotube and kiba occurred. This caused the price to go up as short trades are associated with market efficiency enabling the market to operate freely, thereby making Bitcoin more attractive for investors.
Bitcoin market capitalization reaches $1 million. January, 31 2011

$0.52
As the $1 million market cap was in sight, the Bitcoin price steadily rose during January 201. The price rallied to a temporary peak at $0.95 and closing the day at $0.52.
Bitcoin’s price parity with the dollarFebruary 9, 2011

$1.09
On February 9, 2011, Bitcoin reached parity with USD. Demand for Bitcoin was growing as a result of positive media reports. In addition, by January 28, 2011, a total of 5.24 million Bitcoin had been issued, which represented 25% of the total of 21 million Bitcoin. This increased investors’ confidence in the future of the currency.
Parity drop February 16 – April 4, 2011

$ <1.00 to $0.56
A market downturn soon followed after the news of Bitcoin parity broke on news sites such as Slashdot, Hacker News, and Twitter. The reason for the price drop was that Bitcoin.org could not handle the high amounts of traffic to their website. Another reason for the price drop was a short burst of automated Bitcoin sales at significantly lower prices on March 18.
Bitcoin bubble formation April 16 – June 8, 2011

$1.05 to $29.60
During March and April 2011 more Bitcoin exchanges opened including Britcoin, Bitcoin Brazil and Bitmarket.eu which led to increased demand for Bitcoin. More and more people discovered Bitcoin via the media. For instance, during this phase, WeUseCoins released a video titled what is Bitcoin? which went viral and garnered more than 8 million views. The provocative article about Silk Road by Adrian Chen “The Underground Website Where You Can Buy Any Drug Imaginable” opened peoples’ eyes to a real-world use case for Bitcoin and caused a massive price jump in the following week to a peak of $31 on June 8.
Bitcoin bubble crashJune 9 – November 19, 2011

$28.92 to $2.20
After the massive run in 2011 culminating with the peak on June 8, the bubble burst crashing Bitcoin’s value to a low of $2.20 on November 19. This shaved over 92% of Bitcoin’s value. The significant drop was triggered by the Mt. Gox hack on June 19, when the Bitcoin price was artificially crashed to $0.01. Mt Gox was closed for trading for the following 6 days, but the incident caused fear and loss of enthusiasm by cryptocurrency traders leading to further price decline in the months that followed.
Bitcoin data breachJune 19, 2011

$17.51
Bitcoin was undergoing a market correction and the cryptocurrency was on a downward trend. In June 2011, Mt. Gox database was hacked and 60,000 usernames, email addresses, and passwords were leaked online. Consequently, unauthorized people were able to access admin accounts and issue fake sell orders. Some users reported that their account balance was stolen from their accounts. This event led to Bitcoin investors and fanatics becoming sceptical of the overall security of the currency and exchanges.
Bitcoin Legal Uncertainties June 24, 2011

$17.51
The bubble burst was also triggered by legal uncertainties that surrounded Bitcoin. For instance, EFF had publicly stated that it would no longer accept Bitcoin due to legal concerns.
Bitcoin’s 2012 slow year rise. August 16, 2012

$13.50
In the year 2012, the cryptocurrency had a slow but steady growth. The first peak price of the year was on August 17. The price was $13.50. The reason for the peak was the introduction of Pay-to-Script-Hash (P2SH) for Bitcoin transactions. This improved the security of the digital currency and increased investors’ confidence.
Launch of Bitcoin FoundationSeptember - November, 2012

$12.27
September 2012 saw the launch of Bitcoin Foundation while October saw BitPay reporting more than 1,000 merchants accepting Bitcoin. November saw WordPress accept Bitcoins.
WordPress announces Bitcoin as a new payment methodNovember 15, 2012

$11.04
Leading content management system WordPress announced Bitcoin as its newest payment method. As one of the leading platforms for websites, WordPress popularized Bitcoin as a payment method which positively affected the price. A month earlier, BitPay also announced that it reached a record of 1,000 merchants who accept Bitcoin.
First Bitcoin HalvingNovember 28, 2012

$12.25
Mining rewards on the Bitcoin blockchain network are halved every four years. The first halving occurred near the end of November 2012. The price increased to $13.43 a week later.
Bitcoin 0.8 ‘Hard Fork’March 11, 2013

$47.41
The price increased dramatically since the first halving but investors have encountered a new crisis. With fear that some transactions on the network are not valid and with Mt. Gox facing difficulties operating the exchange (subsequently pausing deposits), the Bitcoin price took a hard hit. After coordination by Bitcoin core developers, the community, and a few large mining pools, all agreed to fork and downgrade to an earlier version of the network. With Bitcoin Core 0.8.1, most of the previous problems were resolved, vastly improving the network’s security. A couple of weeks after resolving the problem, Bitcoin increased to nearly $69.
2013 Bitcoin ‘Cyprus Crisis’ bull runMarch 25 – April 10, 2013

$74
Major banks and institutions within the Eurozone have agreed to fund a bailout for the Cyprus economy worth €10 billion. Among the conditions, Cyprus President Nicos Anastasiades had to agree on collecting taxes from bank accounts holding more than €100,000. Many international investors who used Cyprus as a tax haven were concerned by the new development. As a result, many investors who were affected by the crisis started to invest in Bitcoin. A massive price rally in April led to a major bull run and bubble, with an ATH of $260.
Mt. Gox Bitcoin Trading Volume surge collapse April 10, 2013

From $260 to $50
As the bull run led to massive prices never imagined before, the leading Bitcoin exchange at the time could not handle the increase in trading volume. While the owner originally believed that users began a DDoS attack on the exchange’s server, it turned out that Mt. Gox servers simply could not handle the amount of new traffic and trading volume. The event marked an end to the bull run and the Bitcoin price even dropped as low as $50 the following day.
First SeizureJune 23, 2013

~$108
U.S. Drug Enforcement Administration listed 11.02 Bitcoins as seized asset in the US Department of Justice. This was the very first time a government body officially claimed to seize Bitcoins.
Silk Road FBI shutdown and Ross Ulbricht arrestOctober 1, 2013

$133
The Silk Road played a major part in the sinister part of Bitcoin’s history. In October 2013, the FBI finally put a stop to the anonymous drug dealing market by arresting its owner and creator Ross Ulbricht. Following the arrest, the FBI seized 30,000 Bitcoin from Ross Ulbricht and 144,000 BTC from another malicious account three weeks later.
November Bull run and US Senate Hearing on BitcoinNovember 18, 2013

$685
Following the arrest of Ross Ulbricht, investors sparked another bull run which led to brand new highs. At the time of a U.S. Senate Hearing which discussed Silk Road virtual currencies, Bitcoin experienced a massive surge in demand. Prices skyrocketed almost daily. During the hearing, FinCEN’s Director Jennifer Shasky Calvary stated that the agency wanted to operate in a manner that would not hinder innovation. Only a week later the price increased to $1,000.
New Bitcoin All-time HighNovember 29, 2013

$1,242
During this bull run the asset’s price reached $1,242 on Mt. Gox near the end of November. This bull run was mainly driven by Chinese investors who sought an alternative asset that could help them avoid China’s strict monetary policy and restrictions.
Bitcoin ban in ChinaDecember 5-15, 2013

$1022 to $839
The People’s Bank of China declared Bitcoin not to be a valid currency. Moreover, a new set of policies banned Bitcoin as an asset that can be traded or invested in. The price of Bitcoin decreased to $839 during the following 10 days.
DDoS attacks on all major exchangesJanuary 6-7, February 2014

$940 to $650
A set of DDoS attacks on several major Bitcoin exchanges, including Mt. Gox, Bitstamp, and BTC-e, led to massive problems for traders. Investors had attempted to push prices up in January but failed to do so as the DDoS attacks completely ruined their attempt. By February, Bitcoin’s price traded as low as $400 on some days. Mt. Gox was the first exchange to pause trading, doing so on February 6.
Coinbase Catches SpeedFebruary, 2014

$22
During the month, Coinbase reported selling US $1 million worth of Bitcoins.
Mt. Gox goes offlineFebruary 24, 2014

$547
After stopping the withdrawals at the start of February Mt. Gox was eventually forced to shut down its services after the Japanese government discovered that the exchange lost 744,000 BTC in total due to hacks. On that day, Bitcoin reached a daily low at $400.
Chain SplitMarch, 2014

$48
Temporarily, the Bitcoin blockchain split into two and for 6 hours both operated in parallel. Mt. Gox briefly halted Bitcoin deposits and the exchange rate briefly dipped by 23% to $37.
People’s Bank of China closes exchange’s bank accountsMarch 10, 2014

$408
The People’s Bank of China continued its policy of heavy restrictions against both investors and crypto exchanges. The central bank issued a deadline that required Bitcoin exchanges to close their bank accounts by April 15.
IRS declares Bitcoin to be taxed as propertyMarch 26, 2014

$581
A new announcement by the IRS included a policy document which declared Bitcoin as property, and not a currency. Therefore, the digital asset would be subject to capital gains taxes. The method of declaring the taxes was overly complicated, forcing owners to record every single transaction. As investors from the U.S. began to sell their Bitcoin, the price dropped to $453 a few days after the announcement.
Processing DelaysApril, 2014

$160
Due to insufficient capacity, BitInstant and Mt. Gox experienced processing delays which resulted in Bitcoin’s price falling from $266 to$76 before returning to $160.
Hash Rate IncreasesJune, 2014

$598
Hash power is the amount of computing power lent to the network by the miners. In June of 2014, the Bitcoin network hash rate shot past 100 petahash/sec.
New York BitLicense AnnouncementJuly 17, 2014

$619
The New York Department of Financial Services finally proposed a new set of regulations through the BitLicense. The license would require exchanges in New York to be regulated.
First Bitcoin Financial Product ApprovalSeptember, 2014

$476
TeraExchange, LLC, got the CFTC approval to list an over-the-counter swap product based on Bitcoin price. This was the very first time a U.S. regulatory authority approved a BTC-related financial product.
Coinbase Gets BaseJanuary, 2015

$231
Coinbase raised US $75 million in a funding round. Highest record for any Bitcoin company.
Bitstamp HackJanuary 4, 2015

$275
Since 2014 Bitcoin’s price was on a heavy decline. In January 2015 the asset took another hit as hackers attacked Bitstamp. The exchange lost 18,866 Bitcoin - around $5.2 million at the time. The exchange went offline for eight days, which caused panic in the market. While the stolen assets only represented a fraction of what Bistamp held, it still caused the exchange’s reputation to suffer and prices to drop even more.
U.S. launches BitLicense in New YorkJune 3, 2015

$232
The state of New York and the Department of Financial Services launched the BitLicense in June 2015. This was the first set of regulations that were developed and directly targeted digital currency businesses. A license cost only $5,000 but the regulations were very strict and the requirements difficult to meet. As most exchanges failed to comply with these requirements, they simply decided to exclude investors based in New York.
CFTC declares Bitcoin as a commoditySeptember 18, 2015

$234
The Commodity Futures Trading Commission (CFTC) announced that it had charged a Bitcoin exchange for trading and offering Bitcoin contracts. In the announcement the CFTC for the first time declared Bitcoin and other cryptocurrencies as commodities.
Another Hash MilestoneJanuary, 2016

$447
Seen as a sign of more and more miners stepping in, the network rate exceeded 1 exahash/sec.
Steam starts accepting BitcoinApril 27, 2016

$461
The largest online video game platform and app Steam announced Bitcoin as a new payment method. To facilitate these transactions, Steam’s owner Valve employed Bitpay as the main payment processor.
Second Bitcoin HalvingJuly 9, 2016

$652
Bitcoin’s mining rewards halved for the second time in its history, decreasing to 12.5 Bitcoin per block.
Bitfinex Gets HackedAugust, 2016

$589
Bitfinex, a prominent Bitcoin exchange got hacked and 120,000 BTCs of worth around $60 million get stolen.
Bitcoin breaks $1000 for the first time since 2014January 3, 2017

$1,020
A rally that began during the first half of 2016 has almost doubled Bitcoin’s price. In January 2017, Bitcoin broke $1,000.
Adoption and Volume IncreasesJanuary – March, 2017

$832-1020
Bitcoin starts getting wider adoption among businesses. BitPay reports 3x transaction rate in February 2017 as compared to January 2016.
First Bitcoin ETF deniedMarch 10, 2017

$1,201
By March Bitcoin increased another $200 in value. However, the market turned bearish as the SEC denied a request made by the Winklevoss brothers. They had asked the SEC for a Bitcoin ETF which would make it easier for new users to invest in Bitcoin. However, the SEC denied the request.
Bitcoin recognized as legal tender in JapanApril 1, 2017

$1,085
In April 2017 the Japanese government decided to recognize Bitcoin as legal tender, making it available as a method of payment.
Miners split from Bitcoin and form Bitcoin CashAugust 1, 2017

$2787
After Japan legalized Bitcoin, the market entered another massive rally. Prices had tripled by August, Miners argued about the future of block sizes, with one group supporting bigger blocks. The group eventually became what we know today as Bitcoin Cash, who have officially split from the main network on August 1.
China ICO BanSeptember 3, 2017

$4668
With the rise of Ethereum and its smart contract ecosystem, many investors became interested in other projects than Bitcoin. Projects based on Ethereum raised funds by selling tokens through an Initial Coin Offering (ICO). While incredibly popular, Chinese authorities decided to ultimately ban all ICOs. Their reasoning was that many ICOs were effectively scams and that malicious actors used them to launder money. The event may have targeted Ethereum, but Bitcoin suffered as well as the ban led to a $500 price drop in 10 days.
JPMorgan CEO calls Bitcoin a fraudSeptember 12, 2017

$4166
During an investor conference in New York the CEO of JPMorgan called Bitcoin a scam, famously stating that he would fire any employee who would trade Bitcoin. Calling it worse than the tulip bubble, Bitcoin’s price began to plunge along with the effects caused by China’s ICO ban. A couple of weeks after the statement, Bitcoin dropped to $3,800.
Bitcoin surpasses $5,000 price levelOctober 13, 2017

$5,128
By October 13 the market was on fire again. Bitcoin reached $5,000 for the first time in its history, marking it a new ATH.
Bitcoin reaches $10,000November 29, 2017

$10,104
Bitcoin entered a parabolic phase in which the price doubled in a single month. Deemed to be a psychological resistance, the price surpassed $10,000 by the end of November going from 4 to 5 digits. The price would continue to rise every single day as volatility reached the highest level ever.
Bitcoin all-time high at $19,857December 18, 2017

$19,857
Bitcoin reached the peak of its 2017 bull run setting a new ATH at the price of $19,857. This day marks the end of the 2017 bull run.
South Korean government threatens to ban Bitcoin exchangesDecember 28, 2017

$16,000
Extremely high price volatility caused significant distress for institutions and governments alike. Fearing that retail investors would jump on the bandwagon and speculate in Bitcoin, the South Korean government warned that it would shut down crypto exchanges. “We cannot leave the abnormal situation of speculation any longer,’ stated a representative at the time.
Ban on Anonymity & the Stripe StepJanuary, 2018

$11,710
A regulation was brought into South Korea which made it compulsory for all Bitcoin traders to reveal their identity. This was aimed to curb all the illegal activity being carried out in the network. Online payments firm, Stripe, also announced its support for Bitcoin payments.
Bitcoin’s
10th Birthday
October 31, 2018

$6,337
Bitcoin celebrated ten years of existence at an unconventional time. The leading cryptocurrency reached prices which even Satoshi Nakamoto may not have imagined. But while Bitcoin reached the status of a highly valued investment asset, it had not obtained widespread adoption as a payment method.
Bitcoin Cash Miners split form BitcoinNovember 15, 2018

$6,130
Bitcoin’s price was declining but it would only fall harder after a significant portion of miners split off from the main blockchain network. Fighting over the size of blocks, one group of miners decided to realise its vision of larger blocks by forming Bitcoin Cash. As the hard fork created major uncertainty for the future of the real Bitcoin, prices took another plunge. 10 days after the hard fork, Bitcoin dropped from $6,130 to $4,275
Bitcoin 2018 BottomDecember 3, 2018

$3,460
After an entire year of having bears in control of the market, Bitcoin found strong support at $3,400. At the same time, the cryptocurrency’s mining difficulty dropped significantly, by a margin of 15%.
Proof of Keys Community MovementJanuary 3, 2019

$3,864
Bitcoin investor Trace Mayer proposed a unique new movement. Called ‘Proof of Keys,’ the community movement included an annual event in which investors would perform a digital bank run on exchanges. To do this, users had to withdraw all their assets from cryptocurrency exchanges.
Facebook Announces LibraMarch 1, 2019

$3,882
In December 2018, many rumors surrounding a possible Facebook cryptocurrency appeared on social channels. In March 2019, the social media giant finally confirmed these rumors by announcing the Libra cryptocurrency. Developed in secret by core Facebook employees, Libra was intended to function as a stablecoin which users could utilize to make transactions.
Bitfinex & Tether InvestigationApril 26, 2019

$5,241
Bitfinex manages the market’s most widely used stablecoin. But after an investigation by a New York attorney general, it was discovered that the operator hid an $850 million loss. In fact, Bitfinex did not back 100% of the Tether reserves with USD as previously claimed by the exchange.
Bitcoin Summer Bull runMay – July 2019

$6,000 to $14,000
Following a revival of the market and bullish news surrounding the future of Bitcoin, the asset started a bull run that lasted until July 2019. During this period, Bitcoin’s price not only doubled, but increased to $14,000. Carried by the news of Facebook’s interest in crypto and Bakkt’s announcement of an institutional Bitcoin Futures exchange, the market experienced a dazzling surge. Many had thought that Bitcoin was already on the road towards reaching its ATH, but the mini bull run ended after stocks began to fall.
Bitcoin ATMs IncreaseSeptember, 2019

$10,731
The number of Bitcoin ATMs worldwide increased to 5,457. The highest number of these ATMs were in US, Canada, UK.
Bakkt launches Bitcoin FuturesSeptember 22, 2019

$10,036
Intercontinental Exchange’s Bakkt launched its Bitcoin Futures exchange in September 2019. Long-awaited as a platform that would foster more growth by enabling institutional investors to participate in the market, the platform had an entirely opposite effect. The launch dealt a heavy blow to Bitcoin, resulting in a $2000 price drop after a couple of weeks.
Xi Jinping Blockchain SpeechOctober 28, 2019

$9,220
Prices were falling since July but a speech by China’s President Xi Jinping turned the situation around. Endorsing blockchain technology by announcing a national program for decentralized technology, Xi’s speech pumped the markets as investors believed that it would lead to widespread crypto adoption. This ended the correction and Bitcoin began to increase in value slowly after.
Middle east crisis leads to Bitcoin price rallyJanuary 6, 2020

$7761
Buyers triggered a Bitcoin price rally ahead of 2019’s New Year’s Eve. The rally was jump-started after a crisis in the middle. The U.S. military assassinated top Iranian General Qassem Soleimani on January 6, 2020. Following the event, the Iranian government pledged to plot revenge and retaliate against the U.S.
Bitcoin 2020 March CrashMarch 12 – 13, 2020

$7,000 to $3,3500
Bitcoin’s previous price rally led to the asset reaching more than $10,000 during a short time. But as the Coronavirus pandemic worsened in March, the global economy tanked due to the highly uncertain situation. After the stock market crash in March Bitcoin briefly plunged to December 2018 price levels.
Bitcoin surges as U.S. Fed cut interest rates and initiated QEMarch – April, 2020

$3,500 – $8,000
The market was stabilized after the U.S. Federal Reserve announced new measures to save the economy. By cutting interest rates and introducing new Quantitative Easing measures, the American central bank brought hope for all market participants. During this period, Bitcoin’s price bounced in only a month, rising from $3,500 to $8,000.
Third Bitcoin HalvingMay 11, 2020

$8,857
Bitcoin’s third halving was seen as an event that could trigger a new bull run like in 2017. On the May 11, 2020, the mining rewards went from 12.5 BTC to 6.25 BTC. As the number of daily mined coins cut in half, investors began to buy Bitcoin believing that increased demand would push prices up.
Bitcoin Exchange-Traded ProductsJuly 2, 2020

$9,236
21Shares, an Indian company, began quoting Bitcoin exchange-traded products on a trading system called Xetra linked to Deutsche Boerse.
Twitter hacked by Bitcoin scammersJuly 15, 2020

$9,200
In July, a major social media platform was hacked by several Bitcoin scammers. During the hack, the malicious actors took control over a number of accounts. These included the accounts of famous individuals like Elon Musk, Kanye West, and Bill Gates. While controlling their accounts, the scammers tweeted several posts that targeted the Twitter community.
MicroStrategy Announces second Bitcoin InvestmentAugust 11, 2020

$11,832
In August, software company MicroStrategy announced its second Bitcoin investment with a total value of $425 million Bitcoin. This time, the company bought 21,453 Bitcoins at an aggregated purchase price of $250 million. By doing so, MicroStrategy’s CEO Michael Saylor started a ‘shopping spree’ joined by even more corporate companies and institutional investors.
First Bitcoin Exchange-Traded NoteSeptember 3, 2020

$11,427
Frankfurt Stock Exchange listed in its “regulated market” the quotation of a Bitcoin exchange traded note (ETN).
Hackers steal more than $150M from KuCoinSeptember 25, 2020

$10,702
Hackers stole more than $150 million in DeFi tokens from the KuCoin exchange in September. Most assets were washed through decentralized exchanges and then sold OTC.
CFTC issues charges against BitMEXOctober 1, 2020

$10,623
The Commodities Futures Trading Commission (CFTC) issued several charges against one of the largest Bitcoin derivatives exchanges BitMEX. The regulatory agency accused BitMEX and its operators of laundering money and manipulating the market. Three executives were arrested on the day of the announcement. Investors believed that the charges would lead to a huge price drop. However, Bitcoin only dropped down from $11,000 to $10,000. After a week, the price has already returned to its original event before the event, showing that investors did not care about BitMEX potentially going offline.
Square invests $50M in BitcoinOctober 8, 2020

$10,923
As the market tumbled back and forth after the BitMEX charges, Square announced that it invested $50 million in Bitcoin. While the investment only represented 1% of their total assets, the purchase sparked a rally that would (combined with other news) lead to incredibly high prices.
PayPal Announces Crypto FeaturesOctober 21, 2020

$11,989
Leading online payment processor PayPal announced on the 21th of October that it would soon feature Bitcoin and several other cryptocurrencies on its platform. The news ignited a price rally that would continue for more than a month. In a single day, Bitcoin’s price increased by more than $1,000. PayPal revealed that it would launch the feature for users from the U.S. in several weeks, and for the rest of the world in 2021.
Massive Bull-RunNovember 25, 2020

$19,045
Being reminiscent to the bull run of 2017, the Bitcoin price touched the $19,000 mark once again after almost three years.
Previous all-time high surpassed November 30, 2020

$19,857
After nearly 3 years since the last peak, Bitcoin surpassed its 2017 all-time high.
New all-time highJanuary 3, 2021

$41,950
In January Bitcoin reached its current price peak at $41,950 on January 3, 2021
Elon musk bitcoin tweetJanuary 29, 2021

$37.500
Elon musk updated his Twitter bio to #bitcoin and wrote “in retrospect it was inevitable” causing the price to spike more than 15% from 32.000 to about 37.500
F2Pool sell-off January 12-31

$41.180 – $28.940
The largest Bitcoin miner in the world is selling off large quantities of Bitcoin causing the price drop over several weeks. From selling just a couple of hundred Bitcoin per day miners from the pool suddenly started selling thousands of Bitcoins on every small price increase. The sell-off was documented by the YouTuber George from CryptosRUs, whereafter the discovery spread to several media and aggressive selling seemed to fade.
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