A vital exercise when investing in cryptocurrencies or choosing a transactional crypto asset is to carry out a price study or historical value of a said digital asset to be able to observe through a timeline the behaviour of the price of a cryptocurrency at the time of certain events.
It is essential to know that since the arrival of Bitcoin, there have been certain seasons where the price of cryptocurrencies can fall abruptly. This is usually due to various factors that can affect the price of digital assets in the short term. It is because of this that in the following article, we will talk in a summarized way and take into account the most important events that have affected the price of the most popular cryptocurrency in the world.
Let us remember that Bitcoin began operations in 2009. In its early years, this cryptocurrency was unknown since it was only used by its creator Satoshi Nakamoto and other cryptocurrency enthusiasts. These first transactions were merely tested to evaluate the cryptocurrency’s transactional functioning.
As we mentioned earlier, in the first year of Bitcoin, it was only used by a few people. If we compare it with later years, in this early period, bitcoins were not yet captured as a currency but as a cryptographic project. Therefore, it is used by crypto enthusiasts, computer coders, and members of the Cypherpunk movement.
This first year was significant for Bitcoin, and the fact that these minorities were practically the only ones to test the system was vital as they gave feedback to Satoshi to improve and polish the design.
As the months passed, Bitcoin began to be used more widely in exchange forums to the point where in October 2009, a website called New Liberty Standard created or suggested the first Bitcoin exchange rate where $1 was equal to 1309 BTC; this value is based on the energy and maintenance costs of the computers for Bitcoin mining.
This year, Bitcoin has ceased to be a “clandestine project” and has become an emerging digital currency; thanks to electronic commerce through the Internet, Bitcoin has begun to be used by the more general public but is not at all massive.
This year Bitcoin began to revalue little by little, where $1 is required to buy 245 BTC, also in this year, a trendy event occurred and is known by Bitcoin enthusiasts, and it was the purchase of 2 pizzas for a value of $41 for 10,000 BTC, this event occurred on May 22, 2010. It was vital because it was the event that gave rise to being able to use bitcoins for purchase and sale operations in physical establishments.
This year is crucial since, for the first time in history, bitcoin obtained the parity of $1 per 1BTC. The first bubble in the price of BTC also occurred since, in the middle of this year, the price reached $30 per 1BTC, which happened due to the excellent media spectacle that originated when its price ran $1.
But this did not last long because, like every bubble, it burst, and at the end of this year, the price fell to $2 per coin due to the first Bitcoin halving, which was a blow to inexperienced miners.
Despite having had the first significant drop, not everything was negative since this event allowed Bitcoin to be known worldwide, just because a digital currency was more valuable than the dollar, which was a global and unprecedented scandal at the time.
This year the price of each coin was growing slowly but solidly, breaking the price barriers, reaching a value of $13 for each BTC by the end of this year, with a projection to rise organically up to $70.
In these years, exciting events occurred for this cryptocurrency; since in the first months of 2013, the price of Bitcoin exceeded the $100 barrier, and all this growth is due again to the advertising bonus granted by its users, this being the year where 4 out of 10 Americans had already heard about Bitcoin, thanks to this by April of this year Bitcoin exceeds $200 for each coin.
Once again, having uncontrolled growth and as usual in Bitcoin, its price fell again in May 2013 to 70 dollars; from this moment, the currency returned to a period of slow and safe growth.
Thanks to platforms like Mt. Gox that gave accessibility to more people, they immensely helped access this new currency, becoming the Exchange with the highest flow of crypto assets and volume of transactions at the time.
This year Bitcoin achieved so much popularity that the mass entry of large speculators became very evident, so it is not uncommon to see that by the end of 2013 and the beginning of 2014, the price of bitcoin jumped from $600 to $1000 per coin.
Throughout 2014 until the beginning of 2015, the price of each BTC fluctuated between $400 and $700, again having a significant drop in May 2015 to $200 per coin, mainly due to the hacking of 700,000 BTC on the Mt trading platform. Gox, the price of the coin returned to a slow rise.
These five years were the busiest for Bitcoin when it comes to price since throughout 2016, the price fluctuated from $400 to $900 per coin, but it did not break the $1,000 barrier even though The Chinese Yuan was devalued against the dollar, causing people from this country to shelter their savings in Bitcoin.
It was not until the beginning of 2017 that Bitcoin reached the barrier of $1,000 per coin again, and this year Bitcoin presented some historical price marks, these being $1,200 for April 2017 and $2,500 for July of that same year. It is suspected that this price increase was due to the wave of investment after each halving, the last being in 2016.
By the end of 2017, we had other waves of investment that increased the price of the coin between August and September; the price ranges between $2,000 and $3,000 per unit, but in November, it broke the ceiling price with the crazy jump in the prices of $7,000 and $8,000 per coin, this rise is related to the economic instability that occurred in Zimbabwe due to a coup, as well as the great acceptance of Bitcoin in economically unstable countries such as Venezuela.
By the end of 2017 the price got out of control due to speculation and due to the new users that arrived due to the increases of previous months, where we find that the price remains between $15,000 and $19,000, the latter being the historical maximum until this date.
The panorama for 2018 looked very picturesque for Bitcoin users. Still, as we mentioned before, the nature of this cryptocurrency has always been unpredictable, and that is why Bitcoin went from $15,000 to $6,000 in the first months of this year, being 60% drop in its price; during the year it continued with normal fluctuations, but in December of that same year the price fell briefly to $2,800, being one of the occasions where a large part of the users was panicked by this significant drop.
The year 2019 was a little more of the same; the price began a slow price escalation but not exaggeratedly like in previous years. In mid-2020, the price rose again in a controlled manner to $10,000 and then rose uncontrollably in recent months, achieving a new historical cost of $21,000 per coin.
By 2021, the price of Bitcoin is once again out of control, exceeding its historical maximum price in several months; where it began the year at $25,000 and from this anchor, it begins to climb to 30,000 by the end of January, continuing with prices of 50 thousand and 66 thousand dollars. Per coin, the latter being the historical maximum of this cryptocurrency until the moment of writing this article.
These increases throughout the year are speculated to be due to the rise in transactions in the Bitcoin network due to the uncertainty due to covid-19 and the injections of money in different countries of the world, such as the United States and some European countries.
Due to different environmental policies of some countries, such as China and its ban on cryptocurrency mining, the criticism of well-known personalities such as Elon Musk managed to attract the attention of the most volatile users, where the latter managed to destabilize prices and another fall in down in the overall costs of cryptocurrencies.
The fall in prices continued until mid-2022 when the price reached $17,000; the price has been on a slow climb trying to break the $25,000 barrier, and with a suspicion that in the coming months, the price may rise. The price is due to various financial crises in multiple countries, such as the war in Ukraine or the euro devaluation in the European Union.
Suppose we study these rises and falls in the price of Bitcoin in detail. In that case, we can see that it is a digital asset that is very susceptible to external eventualities, whether they are minor financial crises in some region, economic destabilization in a country, opinions of personalities with relative fame and other eventualities that can positively or negatively affect the price of a cryptocurrency such as Bitcoin; We can also show that Bitcoin, in particular, has seasons where its price grows astronomically and then falls or loses between 505 and 30% of its value, this is due to the same speculation behind the currency and the general events of Fomo when the coin goes up in price.
It is possible that through technical analysis, you can have a broad overview of the potential price of a cryptocurrency in the short term. Still, there is no perfect prediction system, and as we have shown in this article, external factors can affect the value of a cryptocurrency like Bitcoins.
This is partly due to speculators since some users tend to inflate the price quickly and do not let the cost of the coin grow organically or normally. Due to these abrupt increases in prices, it tends to drop Bitcoin’s value by 50%.
Of course, yes, in the cryptocurrency ecosystem, there is a widely used type of currency called stable currencies or Stablecoins, which serve as a lifesaver in the abrupt falls in general prices since they are the only currencies whose value does not fluctuate and almost is always equal to $1.
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