Almost everyone has heard of Bitcoin in 2022, but the history of Bitcoin price is less well-known to the average person.
However, the asset toiled for years in obscurity during its early years. It was seen as more of a pet project for the Internet-obsessed than as the future of finance itself.
Overall, the history of Bitcoin has shown to be very kind to the crypto coin. BTC jumped nearly 24,000,000% from 2010 (at just a fraction of a cent early in the year), all the way to just about $20,000 as of early October 2022.
The Genesis Of Bitcoin
Bitcoin got its beginnings in 2008 when its still-mysterious creator, Satoshi Nakamoto, spelled out the concept in a whitepaper titled ‘Bitcoin: A Peer-To-Peer Electronic Cash System.’ It’s still unclear if Satoshi is a single person or a group. No one has come forth and claimed credit for Bitcoin.
Whomever Satoshi is, ‘they’ mined the genesis block of Bitcoin on January 3rd, 2009. In the next few months, the cryptocurrency had no financial value. Miners worked just for the novelty. The first real-world Bitcoin transaction occurred on May 22nd, 2010, when two $25 pizzas were swapped for 10,000 Bitcoin.
As the cryptocurrency emerged on online exchanges to be bought, sold, and traded, the price eventually crossed the $1 threshold in April 2011. Summer brought the coin nearly to $30, a far cry from what it finished the year at ($4.70).
Many assumed the Bitcoin’ fad’ had run its course in 2011. However, aside from a turbulent year price-wise, other ‘altcoins’ started to emerge (Litecoin in October) that brought ‘competition.’
2012-2016: Steady Steps Forward
However, Bitcoin’s price prospects in 2012 were bolstered by its first halving event, where the miner reward was slashed in half. The event attracted news and new investors, leading Bitcoin to close the year at about $13.50.
A lot changed for the history of Bitcoin it’s future role in the financial sector in 2013. Installing the first Bitcoin ATM in Canada helped propel Bitcoin to the mainstream.
Price rises, falls, and consolidations led to a breakout month in November. Just $213 at the start – Bitcoin finished November at nearly $1,200 before finishing 2013 at about $800.
By December 2013, Bitcoin had gained enough attention to attract the eyes of mainstream financial regulators. During the month, Chinese banking officials said Bitcoin carried risk and banned financial institutions from trading the digital asset.
2014-2016 in the Bitcoin world saw the coin ride the wave of wild price swings. The catastrophic collapse of the Mt. Gox exchange in early 2014 sent the crypto down from $1,000 in early January 2014 to just about $111 in late February. Bitcoin later finished 2014 at ($318) and 2015 at ($430) after immense volatility.
2016 brought an uptick in price back to where the coin sat in early 2014, but 2017 was when many people in and outside the crypto world took notice. In March of 2017, Bitcoin traded about $1920, grew to $5,000+ per coin by September, and eventually finished the year at nearly $20,000.
2017-2020: Bullish Investor Sentiment Drives Up Prices
What made 2017 such a bullish year for Bitcoin? First, retail traders across the year took notice of Bitcoin’s rise and got in on the trading action, helping propel the coin’s prices.
In December, the Chicago Board Options Exchange featured Bitcoin futures, which helped drive institutional attention to the asset. Bitcoin futures also launched on CME in the same month.
2018 was a tricker year in the history of Bitcoin prices. First, Bitcoin ranged between $6,000-$8,000 before ending the year about 73% down at $3,709 in 2018. Bitcoin then reached $10,000 again by the Summer of 2019.
2020 ushered in the COVID-19 pandemic across the world, which initially sent the digital asset tumbling in price as markets reacted to news about lockdowns and other drastic measures. However, Bitcoin soon rallied and managed to hit nearly $20,000 once again in November as financial markets surged due to Federal Reserve measures to promote liquidity.
What did 2021 bring? There were even more new heights for Bitcoin as the crypto surged to $64,000 by mid-April. However, as the year went on, activity by financial regulators, like the Federal Reserve tapering bond-buying stimulus, sent assets like Bitcoin and stocks downward as investors responded to less liquidity.
2022 And Beyond: When Will Bitcoin Escape The Crypto Winter?
Now in 2022, Bitcoin’s remained in a sustained bear market across the year, sitting at just under $20,000 as of early October. Many believe rising inflation, high-interest rates, and general economic uncertainty have led investors away from perceived ‘risky assets’ like Bitcoin.
Still, Bitcoin has supporters even amid the market’s bitter crypto winter.
While few might want to predict where the coin will go, the history of Bitcoin price shows it will continue to rise and fall in price as the asset matures and keeps growing in influence.