Among all the valuable assets, bitcoin is one of the most valuable asset classes that have the most volatile history. In 2009, bitcoin first came into existence and the very first time when bitcoin’s price increased was in 2010. As of 2021, bitcoin has faced many crashes and rallies since its invention, and a lot of people cursed bitcoin because of its highly volatile market and even compared it to fiat currencies. The changes in the price of bitcoin have indicated the enthusiasm of people along with some dissatisfaction. If there’s any price rise, it shows enthusiasm, where if there’s a fall, it will surely indicate dissatisfaction among people because demand and supply are the two factors that affect bitcoin’s price.
The creator of Bitcoin is Satoshi Nakamoto that designed Bitcoin as an exchange medium to provide people with a payment method independent of government and financial institutions. While you may have heard that bitcoin is accepted as a medium of exchange, these are only the early adopters of bitcoin, but in reality, bitcoin is yet to enter the mainstream as a currency. Before bitcoin enters the mainstream, people see a different perspective as some consider it a store or value and inflation-proof currency. You can download from here and can start bitcoin trading.
It might be possible that people’s perspectives may prove to be right and benefit people, the volatile market and price fluctuations still haunt people. Now, the crypto analysts and investors are betting on bitcoin prices and expecting it to increase without explaining its facts or reasons.
Price History of Bitcoin
The entire journey of bitcoin has been quite bumpy. The investors have experienced many bumps in the last decade and even now also. Apart from the volatility of bitcoin daily, various other problems are arising into the ecosystem. These problems are because it is a digital currency and is not backed by the government. There are some major issues from frauds and scams that occur due to the absence of government regulations that add to the volatile market of bitcoin.
There are certain periods when the price of bitcoin and other cryptocurrencies changes, resulting in price bubbles in bitcoin. The first instance in 2011 was when bitcoin’s price rose from $1 to $32, which is a huge gain within a short period. After that peak, bitcoin’s market was followed by a recession that reduced bitcoin’s price to $2 in 2011. After 2011, 2013 was a year that proved to be a good year for bitcoin’s price, and that was when a plethora of people entered into bitcoin trading.
In 2013, another rally took place when in mid-Oct the price of bitcoin was $123.20, and it rose to $1156.10 in only two months, but later it had a fall down after three days and price fall to $760. The next price bubble took place in 2017 when the price of bitcoin skyrocketed and amazing people. The price bubble that happened in 2017 was a remarkable one as bitcoin’s price rose to $20,089 in December-end 2017.
Later in 2019, bitcoin’s price moved sideways because the price increased over $10,000, but in the same year, it fell to $7,112.73. In 2020, due to the covid-19 pandemic, the economy had shut down, and that was a turning year of bitcoin when there occurred a burst in bitcoin price. The pandemic shutdown affected the entire economy, but this led to a rise in bitcoin prices. The entire stock market was surprised to see the influence in the price of bitcoin. People shifted to investing in bitcoin and other cryptocurrencies rather than making investments in fiat currencies. The limited supply of bitcoin has made it a valuable asset, and its price tends to rise because of increasing demand.
What Factors Affect the Price of Bitcoin?
The main two factors that are considered to influence the price of bitcoin are its demand and supply. Several other factors that affect bitcoin prices that include a ban on crypto exchanges, a ban on cryptocurrencies, any fake news or events, scams or frauds at crypto exchanges, and more are the factors that influence the price of bitcoin.
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