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The ups and downs of Bitcoin’s price

Vladlena Martus 2022-06-13

The ups and downs of Bitcoin’s price

Now the price of bitcoin is experiencing severe fluctuations in the market. Having dropped to $30 000 and below, the primary cryptocurrency continues to excite the minds of coin holders, investors, traders, miners, and third-party observers. 

All and sundry discussed the news about the fall of bitcoin, the "explosion of the largest soap bubble" in recent years, the future rate, and other events. Wisebitcoin decided to take part in this discussion with the help of the ups and downs of Bitcoin's price during its history. 

Bitcoin's volatility during the years of its existence has been high enough. For those, who are not familiar with cryptocurrency topics, it could be a dangerous asset to invest in or trade. However, people who know the subject are ready for unexpected occasions because the leading cryptocurrency is ready to surprise them.

Let's plunge into the history of the development and ups & downs of our time's most controversial but essential asset.  

Be careful! Cryptocurrency is a risky asset. To competently trade in the market, you should carefully study the basics and have considerable trading experience. Our material is for informational purposes only.  

Content:

The timeline of Bitcoin’s price: year to year
Why does Bitcoin volatile so much?
The collapse of the Bitcoin price in May 2022
A couple of forecasts for the cryptocurrency future

 

The timeline of Bitcoin’s price: year to year

Bitcoin history originates back in 2008 when the domain name "bitcoin.org" was registered. Later, anonymous crypto enthusiast Satoshi Nakamoto published a paper: "Bitcoin: An Electronic Peer-to-Peer Payment System." This paper describes the future of cryptocurrency work in detail. 

Mining began in 2009, but Bitcoin was still impossible to purchase. In particular, there were no cryptocurrency exchange platforms to service the Bitcoin sell/buy/exchange. Based on facts, bitcoin in 2009 was only worth $0.  

The year 2010 wasn't the breakthrough. Bitcoin couldn't reach the $1 mark. However, its price rose. 

One of the most humorous moments of the year related to Bitcoin was the story of an American, Laszlo Hanech. He had about 10 000 BTC when it cost $0.0025 for 1 BTC. For his 10 000 BTC, he bought… two pizzas. The delivery man was surprised by the payment method; however, he took it and went away. For example, if the guy kept Bitcoin until 2021, he would have had more than $450 million.

In addition, the Mt.Gox cryptocurrency platform appeared. In the future, it will be the target for different hacks that will provoke fluctuations in the BTC rate. 

The year 2011 was a turning point for Bitcoin. Firstly, it could reach the $1 mark. Further, the specific magazine Slashdot and Hacker News wrote about the new cryptocurrency. After this publication Bitcoin.org website had a considerable amount of new users from Twitter. After some time, TIME first mentioned Bitcoin in their article "Bitcoin online money could challenge governments and banks." In addition, in June, WikiLeaks began accepting donations in BTC.

At the same time, in June, Mt.Gox was hacked, and the Bitcoin price dropped from $17 to $0.01. The accounts of 60 000 users with more than $8,7 million were affected by this hack. After a week, the platform recovered its work, but that drop in BTC was the hugest in its history.

In 2012 the price of BTC fell to $4.6. However, during the year, it recovered to $13.44. Also, this year the halving of Bitcoin has taken place for the first time – the first reward for mining the block of the BTC network. 

Back then, 2013 was the first significant growth of the Bitcoin cryptocurrency – for the first time, it reached $1 000. By the autumn, in November, the price of BTC rose to the first major record of $1 153.

After a mind-blowing 2013, there was, as often happens, the first severe criminal case related to the leading cryptocurrency. 

In February 2014, the well-known Mt.Gox site was hacked again, but the damage reached 744 000 BTC. It was a record and the hugest exchange hack till now. After this, Mt.Gox filed for bankruptcy and closed. People started to panic, and the Bitcoin market dropped again. From 2014 to 2015, that period  was called "cryptocurrency winter."

In 2016 the next halving happened. In addition, the Bitfinex cryptocurrency exchange was hacked for the first time, creating damage of 120 000 BTC. 

Also, it was the first appearance of Craig Wright. That person said he was Satoshi Nakamoto. 

The year 2017 was a turning point in the history of Bitcoin prices. At the beginning of 2017, BTC was worth $960; however, it swiftly crossed the $5 000 mark in September. 

On December 17, the peak price of Bitcoin was detected – $19 483 for one coin. At that time, the market capitalization exceeded $330 billion.

At the beginning of 2018, BTC was worth around $13 800, which was the maximum for the coin during that year. In December, the price dropped to $3 800. It was the beginning of the next cryptocurrency winter. The reason lies in the crypto boom of 2017 and the scam projects that appeared along with the prospective startups. In addition, on January 30, Facebook, Twitter and Google banned ads for cryptocurrencies, ICO projects, and binary options on their platforms.  

By the summer, Facebook revised its attitude towards the ban on cryptocurrency ads and allowed it after strict moderation. Unfortunately, this couldn't help the BTC market recover its price. Thus, by the end of 2018, BTC's price had fallen by more than 80%.  

By June 2019, BTC gave all of its efforts to overcome the drop but couldn't reach more than $13 785. That year, the crypto community discussed the following main topics: legal issues, the US Securities and Exchange Commission (SEC) struggle with the coin, and the launch of the institutional BTC service Bakkt. However, Bakkt caused the drop of BTC from $10 036 to $6 657 in just a couple of months. It didn't attract much attention from potential and actual investors.  

In 2020 Bitcoin began to stabilize and grow. Coronavirus was the one reason to drop the coin again. However, BTC has survived and even managed to grow from $7 200 at the beginning of the year to $19 000 by its end.  

At the same time, in 2020, PayPal, one of the leaders in the payment systems market, allowed cryptocurrency usage on its platform.  

In 2021 the Bitcoin growth continued. The leading coin was growing month to month. In the middle of January, 1 BTC was worth $40 700, in February – $57 600, in March – $61 100, and in April – $63 600.  

That huge rise led to the same drop – BTC has fallen to a $48 000 mark, but in the first days of May – to $58 000. A couple of weeks later, BTC was worth about $32 000. 

By August, BTC couldn't cross the $40 000 mark; however, the new growth cycle in September could reach $52 500. Despite the ups and downs, in September, BTC was worth about $48 000. At the end of September, the coin started to grow – it broke the $50 000 mark and the price of $66 400 in October.

BTC couldn't stop – on November 10 it reached the world's record of $69 000 per 1 coin mark! After that, of course, the price dropped a little, but only to $65 800. 

At the beginning of 2022, BTC has gone into some unexpected ways of development. The first "red zone entrance" happened during the protests in Kazakhstan – the coin was worth $42 000. All happened because this country is the second one in BTC mining. 

After that, the price fell to $40 000 – after the meeting of the US Federal Reserve Commission (FRS). The American regulator wanted to increase interest rates and reduce the country's Central Bank balance.  

The following fall was at the end of January – the coin reached $34 500 after the severe expectations of a tightening of the US monetary policy in 2022 due to inflation. In addition, the price was affected by the possible ban of the crypto market in Russia. However, the Ministry of Finance offered a softer concept for cryptocurrency regulation. The war in Ukraine that started on February 24 has also affected risky assets – especially after Coinbase's statements about banning Russian accounts due to the sanctions. 

Why does Bitcoin volatile so much?

The price of BTC depends on many issues that make it volatile from time to time. We can include the following principal reasons:

  • The news of companies and banks, like Tesla, for example. When they announced buying $1.5 billion worth of BTC, the price immediately rose.  
  • Restrictions in countries play a huge role in the crypto market. For example, China's authorities banned banks and payment systems from providing services with cryptocurrencies and announced bans for miners and traders.
  • Adoption as a legal tender like in El Salvador. Firstly, the BTC rate rose because of the news, but after the authorities began to control it, BTC fell.
  • Important announcements from the regulators like SEC. In 2021 they allowed the release of a fund based on BTC on traditional exchanges. 
     

The collapse of the Bitcoin price in May 2022

This May 2022, Bitcoin fell by 8,3% to the $29 500 mark. It was the first time since the summer of 2021. Since the beginning of the last month of spring, Bitcoin has fallen by almost 22%.  

Experts say that the considerable drop of BTC and following fall of altcoins are the consequences of the subsequent occasions: volatility on world stock markets, the US Federal Reserve's rate hike, rising inflation, and exit from risky assets. However, in May, Coindesk reported a rise of BTC by over 10% to $30 345. Today the BTC price is around $28 886.

A couple of forecasts for the cryptocurrency future

Building a forecast for the future of a cryptocurrency is a complex issue. As it is quite a volatile asset, the prognosis could differ for each reason to follow the next weeks or months. The situation in the world changes faster than we can imagine; however, there are a couple of forecasts we can cite for you to see the future risks and hopes of the market.  

Experts from the crypto industry say that there will be another decline with possible short-term rebounds in the cryptocurrency market. The FED can offset the inflation temps by increasing rates, which will harm the technology assets, including crypto. The price prognosis: $20 000-22 000 in May-June. 

Other analysts draw attention to the data on inflation in the US. After their publishing, investors increased sales volume on the cryptocurrency market. If the exchange rate is fixed below $30 000, the following price will drop to $24 000.  

The risky assets, including BTC, are under pressure because of the FED policy. When positive changes, such as increasing the dollar money supply, will happen, the crypto assets will start to rebound. 

To sum up the forecast topic, experts say that the conflict between the US and China in the South China Sea can provoke a flight into defensive assets such as gold and cryptocurrencies. It all can happen due to questioning the existence of a dollar financial system.

 

Of course, to believe the forecasts or not – is only up to you. The volatility and ups and downs of Bitcoin's price are the main trouble in the cryptocurrency market. However, it is helpful to follow the schedule of current interest. JPMorgan, for example, claims that Bitcoin could reach $146 000, but famous investor Cathie Wood believes in $1 000 000 for 1 BTC by the end of 2030. Nobody knows, but we'll hope to see this with our own eyes, to be honest!

While experts, analysts, and investors share their forecasts, Wisebitcoin is ready to give you the most excellent and favorable conditions for cryptocurrency trading, even during the crisis and unstable situation in geopolitics. 

 

We not only provide our traders and investors with a convenient and intuitive platform for trading but also talk about important events in the world of cryptocurrencies. Thus, for example, we recently published a text about the best and most promising cryptocurrencies worth investing in 2022. 


Follow the Wisebitcoin website for more details and be ready for every circumstance in the world. It is calm and secure to be with a reliable trading partner like us.