Bitcoin, the world’s first decentralized digital currency, has become a popular topic in recent years. Its rise in popularity has been accompanied by a volatile price history.
In this article, we will take a closer look at the price history of Bitcoin, from its inception to the present day, including the price of Bitcoin every year.
The Early Years of Bitcoin: 2009 – 2010
Bitcoin was first introduced to the world in 2009 by an anonymous person or group using the pseudonym Satoshi Nakamoto. At the time, Bitcoin had no value. The first recorded transaction with Bitcoin was in 2010, when a programmer named Laszlo Hanyecz bought two pizzas for 10,000 bitcoins. The value of Bitcoin was still negligible at the time.
Bitcoin’s price started to rise in 2011, reaching a high of $32 in June. However, the price quickly dropped to around $2 in November of the same year. Bitcoin’s price remained relatively stable for the next few years, hovering around $100 in 2013 and 2014.
In 2015, Bitcoin’s price started to increase again, reaching a high of $266 in April before dropping back down to around $200 by the end of the year.
Bitcoin’s price remained relatively stable throughout 2016, with the cryptocurrency hovering around $600 for most of the year.
The Rise of Bitcoin: 2017
In 2017, Bitcoin’s price experienced a meteoric rise, reaching a high of nearly $20,000 in December of that year. The price increase was driven by a combination of factors, including increased adoption of Bitcoin, media attention, and the introduction of Bitcoin futures contracts on major exchanges.
January 1, 2017: $963.66
December 31, 2017: $14,156.40
The Bitcoin Boom and Bust Cycle Bitcoin’s price history has been marked by a boom and bust cycle, with periods of rapid price increases followed by sharp declines. This pattern has been observed several times since Bitcoin’s launch, with the most recent cycle occurring between 2017 and 2018.
January 1, 2018: $13,860.18
December 31, 2018: $3,742.70
The rapid increase in Bitcoin’s price led to a surge of interest from investors, with many buying into the cryptocurrency in the hopes of making a quick profit. However, the price of Bitcoin started to decline rapidly in early 2018, dropping to around $3,000 by the end of the year.
January 1, 2019: $3,742.70
December 31, 2019: $7,189.03
In 2019, Bitcoin’s price started to recover, reaching a high of nearly $14,000 in June before dropping back down to around $7,000 by the end of the year.
January 1, 2020: $7,189.03
December 31, 2020: $28,990.70
Bitcoin’s price experienced significant volatility in 2020, largely due to the impact of the COVID-19 pandemic. The price of Bitcoin dropped to around $4,000 in March before recovering to reach a high of nearly $20,000 in December.
January 1, 2021: $28,990.70
December 31, 2021: $47,853.60
Bitcoin’s price continued to rise in 2021, reaching a high of nearly $65,000 in April before dropping back down to around $30,000 by the end of the year. The price of Bitcoin was influenced by a range of factors in 2021, including increased adoption of cryptocurrencies, institutional investment, and regulatory developments.
January 3, 2022: $47,343.60
December 31, 2022: $16,553.40
Despite reaching all-time highs a year ago, the prices of Bitcoin and Ether have dropped by approximately 75% due to various industry failures, such as the collapse of Bahamas-based FTX Trading Ltd. in November.
The collapse of FTX Trading Ltd marked the end of a year of substantial wealth destruction in the cryptocurrency and blockchain sector.
The post-pandemic economic shock led to inflation and increasing interest rates, causing a capital outflow from the speculative crypto ecosystem. Major firms, including the $40 billion algorithmic stablecoin TerraUSD, the crypto hedge fund Three Arrows, and interest-bearing lending businesses Voyager Digital, Celsius, and BlockFi, all collapsed. The industry bellwether, Bitcoin, is down 65% from its peak of $69,000 in November 2021, while around $2 trillion of market value has moved to safer investments.
As a result, 17 of the wealthiest crypto investors and founders have lost a combined total of over $110 billion in personal wealth since March, according to Forbes’ estimates. Over the past nine months, 15 of them have lost more than half of their fortune, and 10 have lost their billionaire status entirely.
January 30, 2023: $23,130.70
Investors are starting 2023 on a positive note for Bitcoin, as they anticipate a reversal in the monetary tightening that caused market turmoil in the previous year.
In 2022, the Fed and other central banks cut interest rates, which caught holders of risky assets, including stocks and digital tokens, off guard. Publicly-listed tech stocks and start-ups backed by private venture capital were hit hard as investors turned to safer investments like cash and bonds.
Bitcoin’s price history has been marked by significant volatility and a boom and bust cycle. The future of Bitcoin remains uncertain, with many experts predicting continued volatility and uncertainty in the short term. However, the adoption of Bitcoin continues to increase, with more institutions and individuals buying into the cryptocurrency. As the adoption of cryptocurrencies continues to grow, it will be interesting to see how Bitcoin’s price history unfolds in the years to come. Understanding the past performance of Bitcoin is essential for any investor or enthusiast who wants to make informed decisions regarding this digital currency.