Since its inception in January 2009, Bitcoin has embarked on a tumultuous journey, experiencing significant price fluctuations. Despite the roller coaster ride, the long-term trajectory has generally been upward, establishing Bitcoin as a noteworthy player in the crypto space.

Over the past decade, crypto, particularly Bitcoin, evolved into a thrilling trading opportunity, creating millionaires. While some traders capitalized on Bitcoin’s persistent rise, others chose the holding strategy, commonly known as “HODLing,” echoing the optimism of many long-term bullish owners.

Despite the long-term rise, Bitcoin faced periods of substantial decline, notably from November 2021 through 2022. During this time, the anticipation of rising interest rates and reduced financial market liquidity contributed to a significant drop in Bitcoin’s price.

How it all started? Bitcoin emerged after the global financial crisis, introduced by the mysterious Satoshi Nakamoto. Early Bitcoin adopters believed in its potential to shift monetary policy away from centralized entities to autonomously managed systems. With a capped supply of 21 million coins, Bitcoin’s value can surge due to growing demand, attracting speculators seeking potential price appreciation.

Bitcoin’s price is famously influenced by sentiment, soaring during market “greed” periods as speculators embrace utopian promises. Conversely, during the “fear” phase, the absence of traction occurs as sellers drive the price lower amid adverse news and market uncertainty.

Amidst all the speculation, Bitcoin’s practical use for everyday purchases is challenging. Major companies that initially embraced Bitcoin payments have quietly retreated, reshaping the narrative from a medium of exchange to a “digital gold” and a store of value. However, Bitcoin’s history as a store of value spans a mere dozen years compared to gold’s millennia-long track record.

Let’s have a look at the dynamic journey of the rise and fall of Bitcoin price that’s influenced by trends, sentiments, and the evolving perception of its role in the financial landscape.

Bitcoin’s Early Years: 2009-2013 – From Techies to the Masses

The genesis of Bitcoin traces back to January 2009, marked by the New Liberty Standard Exchange’s record of the first Bitcoin-to-Dollar exchange later that year. A notable transaction on the BitcoinTalk forum saw 5,050 Bitcoins traded for a meager $5.02 via PayPal, pegging the inaugural exchange rate at a mere $0.00099 per Bitcoin.

Officially launched on January 3, 2009, Bitcoin faced a challenge in establishing standard pricing before mid-2010 due to the absence of exchanges as seen today. However, by July 2010, reliable data became available, marking the beginning of continuous tracking.

2010 witnessed a historic event when an individual offered 10,000 Bitcoins for two pizzas, representing the first tangible purchase using virtual currency. Though 2010 saw Bitcoin’s price not exceeding $0.40 per Bitcoin, early 2011 saw a breakthrough as it surpassed $1 and further skyrocketed to briefly exceed $8 in May—an astonishing eightfold increase within months.

June 2011 witnessed Bitcoin’s price soaring to nearly $30, an unprecedented rise. Despite reaching these heights, Bitcoin concluded 2011 at $4.70 after a significant bubble burst, causing a more than 90% fall from its peak.

The year 2012 was characterized by consolidation, culminating in Bitcoin’s first halving in November, impacting miner rewards.

This consolidation laid the foundation for Bitcoin’s impressive performance in 2013. It gained broader attention with the installation of the world’s first Bitcoin ATM in Vancouver, and the price surged to over $20 by January. The momentum persisted, doubling by early March and reaching an astonishing $230 eight days later.

However, this exuberance was short-lived, as Bitcoin experienced a roller coaster ride, hitting $68 and then doubling again to trade above $150 within a week. The intense volatility subsided in June and July, leaving observers to question if this marked the pinnacle of Bitcoin’s tumultuous price swings.

Bitcoin’s Breakthrough: 2013-2017 – The Journey to Recognition

Following consolidation, Bitcoin experienced a significant surge in November 2013, starting at $213 and doubling to nearly $435 within 12 days. By the month’s end, it had tripled, reaching over $1,200. Despite a downturn, it ultimately closed the year at $805 —still a remarkable increase from just $541 a few weeks earlier. Late in the year, the People’s Bank of China imposed a ban on using Bitcoins on financial institutions.

The year 2014 retained Bitcoin’s notorious volatility. After peaking at $1,000 in January, Bitcoin plummeted to $111.60 on February 21, approaching a 90% decline. Mt. Gox, one of the earliest crypto exchanges, faced issues, halting withdrawals and declaring bankruptcy after losing 744,400 Bitcoins. Remarkably, within five days, Bitcoin rebounded to $593.10, more than a fivefold increase. Despite a gradual decline, it closed 2014 at around $318.

In 2015, Bitcoin, typically known for its volatility, exhibited a slow uptrend, concluding the year at $430. November saw the adoption of the official Bitcoin B symbol. The first half of 2016 showcased muted volatility and price consolidation, but by mid-June, Bitcoin surged to $700, reaching the $1,000 milestone in early 2017, marking a pivotal year for national recognition.

In 2017, Bitcoin’s value initially oscillated between $1,000 and $1,200 but gained momentum, hitting $2,300 by the end of May. Despite a brief dip, it surged past $4,000 in August, eventually breaching $13,000 by mid-December, culminating in an all-time high above $19,000. Bitcoin futures trading commenced on the Chicago Board Options Exchange in December, fostering increased interest and capital.

Bitcoin’s rapid ascent in 2017 became self-sustaining, drawing in more investors and pushing its value to new heights. Despite finishing the year slightly below its peak, Bitcoin concluded the groundbreaking year at $13,850.

Bitcoin’s Resurgence: 2018-2020 – Overcoming Challenges and Scaling New Peaks

Following the 2017 surge, Bitcoin faced a prolonged downtrend in 2018, experiencing a brief surge at the year’s beginning. However, by the end of the first quarter, it had plummeted nearly 50%, fluctuating between $6,000 and $8,000 before closing the year at $3,709, marking a 73% decline.

The year 2019 saw Bitcoin attempting to breach $4,000 for months, achieving it in April and reaching $8,000 in June. Despite spiking to $13,000 in June, it dipped below $10,000 by September, concluding the year just under $7,200.

In 2020, Bitcoin rebounded, surpassing $10,000 within six weeks. Amidst stock market downturns due to the initial COVID-19 wave, Bitcoin fluctuated from $7,935 to $4,826 on March 12, 2020 – a 39% decline in a day. Recovering by early April, it surpassed $11,000 in July and $12,000 in August. October witnessed another breakthrough: it exceeded $13,000, soaring to nearly $20,000 in November 2020, propelled by Federal Reserve liquidity and vaccine optimism.

December 2020 saw Bitcoin’s remarkable ascent, closing the year at an impressive $28,949, showcasing its resilience and ability to navigate challenging market dynamics.

Bitcoin’s Roller Coaster: 2021-2023 – Navigating Challenges and Seeking New Highs

Commencing 2021 on a high note, Bitcoin surged, reaching over $64,000 by mid-April, fueled by optimism stemming from the Federal Reserve’s commitment to sustained liquidity. However, the bullish momentum took a sharp turn in May when China issued warnings and restrictions on crypto transactions, prompting a rapid 50% decline.

Despite China declaring all crypto transactions illegal in September, Bitcoin rebounded, surpassing $60,000 by October and hitting a new peak at $68,789 on November 10, 2021. The Federal Reserve’s announcement of tapering bond purchases and raising interest rates to combat inflation triggered a broader market decline, affecting Bitcoin and other cryptos.

The market turbulence persisted into 2022, with Bitcoin fluctuating around $40,000. As the Fed aggressively raised interest rates in March 2022, Bitcoin sank further, establishing a new trading range of around $20,000. Confidence waned, and by mid-2022, it plummeted below $16,000, influenced by events like the FTX controversy.

Bitcoin’s fortunes improved in 2023, witnessing a more than 50% gain by mid-June amidst a tech stock rally. Despite regulatory crackdowns by the Securities and Exchange Commission (SEC), Bitcoin traded around $26,000 in mid-June and hovered near $27,000 by late September. As interest rates appeared to peak in October 2023, Bitcoin experienced a resurgence, surpassing $42,000 to conclude the year amid speculations of the SEC approving Bitcoin ETFs. The crypto market, marked by its resilience, navigated through regulatory challenges and market dynamics, ending the period with renewed optimism for Bitcoin’s future.

January 2024: Debut of Bitcoin ETFs

Following months of anticipation, the SEC formally approved the trading of Bitcoin through Exchange-Traded Funds (ETFs), granting permission to 11 fund managers for fund listings. The inauguration of Bitcoin ETF trading took place on January 11, 2024. In the lead-up to the announcement, Bitcoin reached a pinnacle, almost hitting $49,000, yet experienced a slight moderation in the ensuing weeks.

Bottomline

In its 15-year saga, Bitcoin has weathered turbulent market dynamics, regulatory shifts, and global scrutiny. Bitcoin’s journey reflects resilience and adaptability from its inception in 2009 to the recent milestone of ETF trading approval in 2024. Despite facing challenges, the crypto has reached remarkable highs, securing its position as a store of value. The question lingers as we look to the future: Will 2024 witness Bitcoin’s all-time high? The crypto community anticipates the unfolding narrative, recognizing Bitcoin’s enduring impact on the financial landscape.

Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.