How the dynamics of the bitcoin exchange rate have changed over the entire history of its existence

At the end of July 2022, the price of bitcoin is slightly above $20,000. Recall what the price of the first cryptocurrency was from 2009 to 2022

Since the beginning of 2022, the volatility of bitcoin has been extremely high, in particular, by the end of July 2022, the rate fell to the level of $20,000. To a person who is not intimately familiar with the cryptocurrency industry, such instability may seem dangerous. However, this is a familiar story for bitcoin - to surprise investors even when no one expects it. In this article, we will recall the main ups and downs of the asset, and also trace the dynamics of the bitcoin rate from the very moment of its creation in 2008 to the present day.

Content

• Bitcoin price history

• Bitcoin price by years

Bitcoin price history

Later that year, someone using the pseudonym Satoshi Nakamoto published a paper titled “Bitcoin: An Electronic Peer-to-Peer Payment System.” In it, he described how the future cryptocurrency will work.

In 2009, cryptocurrency mining began. However, bitcoin was not sold anywhere. Back then, there were no cryptocurrency exchanges at all.

Bitcoin price by years

2010

Throughout 2010, bitcoin did not manage to reach the $1 mark, but the price had already begun to rise. The most amusing event of that year was the moment when the American Laszlo Hanech bought two pizzas for 10,000 BTC (then 1 BTC was worth $0.0025). If Laszlo had kept this amount of bitcoins for another 10 years, then in 2021 he would have had more than $450 million.

Also in 2010, the infamous Mt.Gox cryptocurrency platform appeared, which would later become a target for hackers.

2011

2011 was a turning point for BTC: in our history of the bitcoin exchange rate over the years, it occupies an almost more prominent place than the record-breaking 2017. Firstly, bitcoin finally managed to reach the $1 mark.

What is unusual about this? The fact is that hashrate is an indicator of the speed with which mining devices in blockchain networks solve mathematical problems.

Such a sharp jump could be explained by the fact that someone used a supercomputer or some kind of network bot, which would later be called a “mystery miner” in the cryptocurrency community. This “mysterious miner” became the reporting point for the gradual increase in the bitcoin network hashrate, and since June it completely “blew up” the network to an unthinkable 15.8 teraheshes per second.

2012

By 2012, the price of bitcoin dropped to $4.6, but within a year it recovered to $13.44.

2013

In 2013, bitcoin reached $1,000. On November 30, 2013, the price of bitcoin rose to its first major high of $1,153. It repeated it only a few years later, on January 5, 2017.

2014 and 2015

In February 2014, the Mt.Gox site was hacked again, this time stealing 744,000 bitcoins.

2016

2016 was marked by another halving, the first Bitfinex hack for 120 thousand bitcoins, and the appearance of Craig Wright, who proclaimed himself Satoshi Nakamoto. By the way, Wright is still suing the developers of Bitcoin Core and Bitcoin Cash, who, as a result of the Mt.Gox hack, deprived him of access to two crypto wallets.

2017

A turning point in the history of the bitcoin exchange rate. At the beginning of 2017, bitcoin was still worth $960, in September it crossed the $5,000 mark, and on December 17, the peak price of bitcoin was fixed at $19,483. The market capitalization of bitcoin that year exceeded $330 billion.

It affected the accounts of 60,000 users totaling more than $8.7 million.

2018

At the beginning of the year, bitcoin was worth around $13,800 – and this is the maximum price for a coin.

On January 17, 2018, the coin rate fell to $9800. On January 30, Facebook, Twitter, and Google banned advertising of cryptocurrencies, ICOs, and binary options on their platforms. After that, the price of bitcoin continued to fall.

By the end of 2018, the bitcoin exchange rate had fallen by almost 80% compared to the same period in 2017.

2019

In June 2019, bitcoin tried to overcome the bearish crisis, but could not cope with the resistance at $13,785. The main topic in the community was legal issues, the US Securities and Exchange Commission (SEC) struggled with bitcoin-ETF and hoped for the launch of an institutional bitcoin- Bakkt service.

Bitcoin finally launched in September but didn't get much attention from institutional investors, causing it to drop from $10,036 to $6,657 in just a couple of months.

2020

Bitcoin and other cryptocurrencies seemed to go against all traditional assets and rose when the markets fell.

In January, bitcoin traded at $7.2 thousand, and in February at $10.5 thousand, but then there was a sharp drop to $3.8 thousand.

First, the money supply of the US dollar grew by 22%. And since business activity has been greatly reduced due to the coronavirus, this has led to a devaluation of the currency.

In 2020, one of the largest payment systems PayPal allowed the use of cryptocurrencies for payments on its platform. This decision was met with huge demand, and the company had to increase the limit on operations several times.

2021

In mid-January, 1 BTC was worth $40,700; on February 20, the price reached $57,600; on March 13, $61,100; and on April 13, $63,600.

However, after that, the digital asset fell by $14,000 — the coin was trading at around $48,000. In the first days of May, the price of bitcoin rose again to 58,000, only to fall to $32,500 in the following weeks.

It was then that Bitcoin began a new growth cycle, which lasted until the first days of September. On September 7, the first cryptocurrency reached a local record of $52.5 thousand.

The successful end of the summer was followed by an autumn fall — by mid-September, bitcoin fell to $43,000, then briefly returned to $48,000. thousand

Everything changed on September 30th. The cost of bitcoin rushed up and easily broke through the $50,000 mark. The next local peak in mid-October was $62,500, and on October 20, bitcoin traded at a record price of $66,400 at that time.

However, the first cryptocurrency did not even think of stopping - already in November, the world saw how bitcoin once again broke the value record. On November 9, one coin was given $68.3 thousand, and the next day the cryptocurrency rate broke through the $69 thousand mark. After that, the cost of bitcoin decreased slightly, and by November 15 it was trading at $65.8 thousand.

The volatility of bitcoin largely depends on the news of companies and banks. Tesla announced that it bought $1.5 billion worth of coins - the price has risen. Soon after, the company changed its mind about accepting bitcoins as a means of payment - the value of BTC collapsed by 10%.

Later, other events also influenced the bitcoin rate, for example, new restrictions in China, which were introduced in May. First, the country's authorities banned banks and payment systems from providing services with cryptocurrencies. A few days later, China announced new bans for miners and traders, resulting in a large-scale exodus of miners from the country. The hashrate of the network has plummeted and with it the value of bitcoin.

The course was also influenced by the adoption of the first cryptocurrency as legal tender in El Salvador. Before bitcoin was first supported at the state level in the world, its value grew, but soon after the entry into force of the law, it collapsed.

And another important event for bitcoin also happened in 2021 - for the first time, the US Securities and Exchange Commission (SEC) allowed the release of a fund (ETF) based on the first cryptocurrency on traditional exchanges.

Experts have not reached a consensus on what will be the dynamics of the price of bitcoin. JPMorgan analysts believe that bitcoin could reach $146,000 in the future. However, for this, the cryptocurrency needs to become less volatile.

2022

Since the beginning of the year, the first cryptocurrency has gone into the red zone several times. The first crash came amid news of protests in Kazakhstan. Then the cost of bitcoin fell to $42 thousand. The fact is that Kazakhstan ranks second in the world in terms of BTC mining.

Also, the meeting of the US Federal Reserve Commission (FRS) influenced the collapse of bitcoin. In early January, it became known that the American regulator plans to increase interest rates and reduce the balance of the country's Central Bank. The price of bitcoin fell to $40,000.

The next major crash occurred on January 22. The value of the first major currency fell below $36 thousand, at the moment it reached $34.5 thousand.

The fall of BTC was affected by the general collapse of the stock market due to expectations of a tightening of the US monetary policy. Goldman Sach previously reported that it expects a tighter policy from the Fed in 2022. Bank analysts predict an increase in interest rates four times a year and a reduction in the balance sheet in the summer to combat inflation, which reached record levels in the US for the first time in forty years.

Also, the price of bitcoin was affected by the news about a possible ban on cryptocurrencies in Russia, which the Central Bank spoke about. On January 27, the Ministry of Finance proposed a more loyal concept for regulating cryptocurrency in the country. The ministry believes that a complete ban will destabilize the industry.

On January 24, the price of bitcoin hit below $33.4 thousand for the first time since the summer of 2021. The rest of the crypto market collapsed along with bitcoin.

In February, the value of the main cryptocurrency either grew above $45,000 or fell again to $35,000 amid geopolitical deterioration. The turning point came on March 22, when bitcoin took an upward course. At its peak on March 28, the price of the coin almost reached $48,000 for the first time since the beginning of January.

In April, the price corrects slightly, but bitcoin is still trading above $42,000. Currency.com analyst Mikhail Karkhalev believes that now the main target of bitcoin is the $52,000 level, a rise above which will reverse the medium-term downtrend.

In April, the price of bitcoin was in the range between $36,000 and $47,000. In May, the cost of the first cryptocurrency began to decline sharply.

On May 11, bitcoin reached $28,000, then the price dropped even lower, to $19,000. One of the strongest crashes occurred on June 18. At the moment, the cost of bitcoin reached $17 thousand. On this day, the cryptocurrency market lost about $800 billion from its capitalization. BTC fell along with other cryptocurrencies. 

Investor sentiment reflects the fear and greed index, which was in the red zone in May and June, in the range of 9 and 11. The main reason for the fall is inflation in the US, which rose to 8.6% in May. Against this backdrop, the Federal Reserve raised interest rates.

The second reason for the collapse of BTC and the rest of the crypto market is the increased distrust of digital assets due to the collapse of LUNA and TerraUSD.