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Since its inception, bitcoin has become one of the most valuable and volatile assets on the market – although it fell sharply in 2022, it peaked at over $68,000 in 2021.
In just a decade, bitcoin has gained cult status and reached impressive heights. The meteoric rise of bitcoin, which has become the preferred digital asset, is unlike any other commodity, resource or asset that crypto LTC casino is interested in.
Bitcoin paved the way for a growing class of cryptocurrency assets, rising to an all-time high of $68,649.05 on Nov. 10, 2021. Thanks to surplus cash in the market and investor interest, bitcoin rose more than 1,200 percent between March 2020 and Nov. 2021. However, its bullish growth came to an abrupt end in 2022 as investors took less risk amid widespread inflation and economic uncertainty.
What spurred the rise in the bitcoin price and where is it now? Read on to find out.
The story of the bitcoin price: a response to the 2008 financial crisis
Created to counter the 2008 financial crisis, bitcoin endured extreme volatility, rising to $19,650 in 2017 before spending years to lock below $10,000.
Unveiled in late 2008, the cryptocurrency was set to revolutionize the monetary system and was first introduced in an official document titled «Bitcoin: A Peer-to-peer Electronic Monetary System.»
Written by a notoriously elusive man (or men) who used the pseudonym Satoshi Nakamoto, the nine-page manifesto lays out a compelling argument and framework for creating a cybercurrency.
Cryptographically protected, the peer-to-peer electronic payment system was designed to be transparent and resistant to censorship. Using the power of blockchain technology to create an immutable ledger preventing double-spending, the real attraction for bitcoin’s early adopters was its ability to take power away from banks and financial institutions and transfer it to the masses.
This was especially tempting as the aftermath of the 2008 financial meltdown ricocheted internationally. Described as the worst financial crisis since the Great Depression, the value of $7.4 billion was wiped off the U.S. stock market in 11 months, while the global economy contracted by about $2 trillion.
Bitcoin price story: Bitcoin finds its footing
In July 2010, bitcoin began trading at $0.0008, rising to $0.08 by the end of the month. The cryptocurrency was relatively stable then, slowly climbing into the $10 range until it jumped to $250 in April 2013.
Chart of bitcoin price in U.S. dollars from 2011 to 2022.
Graph via TradingEconomics .
Bitcoin price history: COVID-19 moves coin higher
January 1, 2016 marked the beginning of a steady rise in the bitcoin price. The year started at $433 and ended at $959, a 121 percent increase over 12 months.
The next year brought a massive proliferation of bitcoins. Between January and December 2017, additional attention, the introduction of new cryptocurrencies and coverage in the mainstream financial media increased the value of the cryptocurrency by 1,729 percent, from $1,035.24 in January to $18,940.57 in December.
This record threshold ultimately proved unsustainable, and bitcoin fell victim to its own routine volatility, which steadily undermined its previous gains. Despite this decline in value, the virtual currency still held above $3,190, a low it has not reached again since.
Since its launch in 2008, bitcoin’s detractors have used the digital currency’s short history to defend their reluctance to support the new asset. Questions have arisen about how bitcoin would behave during a financial crisis or recession because the coin is extremely susceptible to uncertainty.
The increased printing of money in response to the pandemic also benefited bitcoins, as big-cap investors sought to diversify their portfolios. The success of the world’s first cryptocurrency amid ups and downs in the market in 2020 and 2021 led to increased interest and investment in other cryptocurrencies and digital assets.
The year 2021 also saw the emergence of the non-reciprocal token (NFT) . Using blockchain technology, NFTs are units of data that are stored, traded and traded digitally. These unique crypto-assets are widely used in the arts and other digital environments.
The NFT market is estimated to grow to more than $40 billion in 2021, driven solely by cryptocurrencies, the only form of payment for NFTs.
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