Throughout its existence, Bitcoin has experienced drastic increases and decreases in price, which has made it unique as an asset. Here at Crypto Academy, we have made a BTC price overview from 2009 to 2021. We will first briefly elaborate on what Bitcoin is.
What is Bitcoin?
Bitcoin is the first cryptocurrency that was launched to provide a viable alternative to the traditional financial system. Behind Bitcoin, there really is no governmental authority, banking system, business, or any single individual who governs the network.
Everyone may use the BTC payment system. Transactions cannot be controlled or halted here, unlike in the traditional banking system. So to say, you don’t need a middleman anymore. All transactions are done in a peer-to-peer manner on the Bitcoin blockchain.
Bitcoin has many of the same characteristics as gold and even has certain advantages. It is more complicated, separable, transparent, transferrable, and configurable. Furthermore, the total quantity of BTC that will be mined is restricted to 21 million. Nobody can make bitcoins any longer. As a consequence, Bitcoin satisfies all of the requirements for use as a store of value.
For the very first time in recorded history, we have an asset that’s also totally decentralized and provides a viable alternative to gold as well as other forms of a store of value in the form of BTC. Bitcoin symbolizes the polar opposite of the well-known inflating FIAT currencies, with its deflationary nature (euro, US dollar, etc.)
Read more: What is Bitcoin? – A Step-By-Step Guide
From $0 to $64,863
Satoshi Nakamoto released the Bitcoin whitepaper on October 31, 2008. The Bitcoin program went online three months later, on January 3rd, 2009, and the digital currency could be used for the very first time. This fact makes BTC almost 12 years old.
The largest cryptocurrency has had ups and downs over the past practically 12 years. It’s difficult to imagine the experience of all individuals who have followed the project from the beginning. We’ve listed the most crucial events since 2008 below to give you a sense of how dynamic Bitcoin’s past is.
2008: The Start of a Globally Unique Project
15 September 2008. The global financial crisis has reached its pinnacle. Lehman Brothers, a 150-year-old investment bank in the United States, declares bankruptcy. As a response, the economic crisis morphed into a banking and real-estate meltdown. The world was aware of a slew of unfavorable elements that had contributed to the catastrophe.
One of the most stunning economic catastrophes in recent times was caused by a deadly mix of incorrect credit ratings by rating agencies, a real estate bubble, shadow banking, and, most importantly, growing income disparity.
Shaped by the perceptions and repercussions of this mishandling, an individual who remains anonymous to this day released a white paper on a cryptocurrency about 6 weeks later. Bitcoin was the name of the digital currency, and it signified an entirely different notion than the previous monetary policy.
The Bitcoin Program Went Online in 2009
The first block of the Bitcoin blockchain was produced on January 3rd, 2009. This initial block is also known as the Genesis block. The word “emergence” originates from Greek Mythology and means “creation,” “birth,” or “emerging.” The cryptocurrency has always been clear that it is more than just a form of money.
Satoshi Nakamoto placed a single statement in the initial block, shaped by the consequences of the required bailouts by numerous institutions. This one statement, on the other hand, has had a lasting influence and exemplifies Nakamoto’s goal.
This is a clear condemnation of the political leadership’s persistent efforts to preserve the banks at any costs, notwithstanding their dishonesty. The original newspaper from 2009, by the way, is now quite valuable and a true collector’s piece.
Also Read: Who Is Satoshi Nakamoto – Everything You Want To Know About The Bitcoin Founder
The Early Years of Bitcoin: the Path to $1 per BTC
The initial exchanges in the Bitcoin ecosystem required a little more than two years to develop. In February 2011, the price of Bitcoin actually skyrocketed, reaching the magical $1 barrier for the very first time. One Bitcoin was valued exactly one dollar, marking a landmark moment in the history of the world’s first autonomous money.
In this year, BTC’s popularity skyrocketed, and the Bitcoin path went through yet another pivotal event: the first Bitcoin significant price increase. By July 2011, the price of Bitcoin had increased to $31. Within 5 months, the increase was above 3,000%.
The Bitcoin craze had begun. Various TV shows were also heavily involved, ensuring a broad audience. Furthermore, the effects of the 2008 financial crisis were still being felt. As a reaction, there was a surge in interest in monetary substitutes to our current system.
The First Bitcoin Price Drop
BTC’s price has plummeted to as low as $2 by November 2011. That’s a 93% decline in the price of Bitcoin. This had turned off the tiny interest group and other possible investors. The media outlets that have caught up on this Bitcoin course development already have declared Bitcoin deceased. BTC was probably pronounced dead for the first time, but surely not the last.
Bitcoin Price Development From 2013 to the end of 2016 – an Up and Down
After the initial shock of the Bitcoin boom, it took over two years for the price of Bitcoin to return to its previous all-time high. In April 2013, the price not only burst beyond the $31 barrier once more but also climbed to $230. Within the first four months of 2013, the price of Bitcoin had increased by more than 2,300 percent.
Obviously, the rapid surge was followed by a sharp correction. Over the next 4 months, the Bitcoin price plummeted to as low as $66. That’s a decrease of more than 70%. A true suspenseful thrill ride. This occasion, however, hadn’t discouraged investors, since many had previously experienced the first severe drop of almost 93% in 2011. That hardened up and showed that the patient will eventually be rewarded. The Bitcoin Hodlers have been created. In the meanwhile, additional Bitcoin exchanges have popped up, making it easier to get your hands on BTC. An article written on Forbes in 2013 called this year ‘The Year of Bitcoin’’. The article mentions what the Executive director of the Bitcoin Embassy in Montreal, Quebec, Guillaume Babin-Tremblay had to say on the situation.
“Bitcoins were growing slowly until Cyprus. Cyprus was the catalyst for the big increase in the price,” he mentioned. “The price started trading at about $40 and then doubled within a couple of days,” he further stressed.
It took until November 2013 for the Bitcoin price to hit its all-time peak. But there was no end in sight even here. Bitcoin was on the verge of another significant price increase. During November, the BTC price climbed from $200 to $1,242.
The following drop in Bitcoin’s price did not take long. Mt. Gox, one of the world’s major crypto exchanges, added to the selling pressure and anxiety. Mt. Gox was the third biggest Bitcoin exchange at the time. The exchange claimed in February 2014 that it had been hacked and that all of its clients’ bitcoins had been stolen.
The recent Bitcoin price drop was exacerbated by this revelation, which started one of the longest bear markets in BTC’s existence. At the time, China was also contemplating banning Bitcoin. As an outcome, by January 2015, the BTC price had dropped to as low as $214. That’s a decrease of almost 82%.
For several years, investors had been waiting for the outcome of the historic Bitcoin price fall. The Bitcoin price did not surpass its previous all-time high of $1,242 until February 2017.
But a lot has occurred in the process. Not only has the second Bitcoin Halving, which decreased the block reward from 25 to 12.5 BTC per block, spurred an increased interest in cryptocurrencies, but so has a significant media presence.
BTC has long since stopped being a speculative asset in many nations at this point. Bitcoin has been utilized in various countries (e.g. China) as a different investment option or merely as a bridge currency to avoid government control and limitations because of its revolutionary qualities.
2017: The Preliminary High of $20,000 Has Been Hit
2017 will undoubtedly go down in Bitcoin history as a pivotal year. Everyone was discussing BTC for the very first time in history. It was the talk of the town, and it felt like treasure to many people. Many people have never heard of Bitcoin before and didn’t want to lose out on the possible riches. A once-in-a-lifetime rally began, lasting roughly a year. By December 2017, the Bitcoin price had reached $20,000 in less than a year.
By January 2019, the price had dropped to as low as $3,200, generating panic and anxiety among so many investors. With a Bitcoin price decline of almost 83%, it’s no surprise it did so.
Things began to improve slowly but steadily after this spectacular transaction. The market gradually rebounded, and interest in Bitcoin increased once more. When the price of Bitcoin surpassed $5,000 for the second time in April 2019, the mainstream media hopped on the bandwagon and gushed about this reappearance, which had a lot of impact.
The rapid rise to up to $13,800 by the summer of 2019 was partly fueled by Facebook’s stablecoin effort, Libra. Almost every day at the time, the project was being covered in the news. As a result, there was a surge in interest in Bitcoin.
Also Read: How to Buy Bitcoin in the USA?
What Was the State of Bitcoin (BTC) Back in 2020?
After reaching a high in the summer of 2019, the BTC price began to fall. A correction could hardly be avoided in such a short time after such a significant gain. By December 2019, the Bitcoin price has recovered to $6,700. The price of Bitcoin varied between $ 7,000 and $ 10,500 in March 2020.
This sideways shift, however, should come to a stop shortly. The Bitcoin price has plummeted as a result of the Coronavirus crisis and the rapid collapse of conventional markets. On March 13, 2020, a historic decline happened. BTC’s price plummeted to $4474. After the initial shock subsided, the Bitcoin price rose to as high as 7,000 USD in a matter of days. Later, ranging between $7,000 to $9,000.
Bitcoin 2021 Price
The coronavirus caused inflation to rise in 2020 and investors began to invest in Bitcoin. A new wave of investment by institutions was started by Microstrategy who invested $250 million on BTC in August 2020, to be followed by the news that Paypal has integrated cryptocurrencies into its platform in October. These factors led Bitcoin to start a new bull run and reach a record price of $64,863, on April 14, 2021. However, Bitcoin dropped in price again and now it stands at $33,024.
Bitcoin Price Milestones
| $0.00 | January 2009 |
| $0.10 | 10th October 2010 |
| $1.00 | 9th February 2011 |
| $10.00 | 2nd June 2011 |
| $100 | 3rd April 2013 |
| $1,000 | 8th November 2013 |
| $850 | 16th February 2014 |
| $2,000 | 20th May 2017 |
| $3,000 | 11th June 2017 |
| $4,000 | 13th August 2017 |
| $5,000 | 1st September 2017 |
| $10,000 | 28th November 2017 |
| $15,000 | 7th December 2017 |
| $19,783 | 17th December 2017 |
| $6,200 | 5th February 2018 |
| $3,300 | 7th December 2018 |
| $20,442 | 1st July 2019 |
| $8,771 | 9th November 2019 |
| $19,850 | 30th November 2020 |
| $28,000 | 27th December 2020 |
| $41,973 | 8th January 2021 |
| $64,863 (All-time high) | 14th April 2021 |
Read more: How Much will the Bitcoin Price be in 2025?
Takeaways
- Bitcoin was launched in 2009.
- In the beginning, Bitcoin was worth $0.00. In order to be viewed as an asset of value, it needed to journey on quite a long and bumpy road.
- In February 2011, the price of Bitcoin actually skyrocketed, reaching the magical $1 barrier for the very first time.
- In April 2013, the price not only burst beyond the $31 barrier once more but also climbed to USD $230.
- Mt. Gox exchange claimed in February 2014 that it had been hacked and that all of its clients’ bitcoins had been stolen.
- Bitcoin has been utilized in various countries (e.g. China) as a different investment option or merely as a bridge currency to avoid government control and limitations because of its revolutionary qualities.
- By December 2017, the Bitcoin price had increased above $20,000 in less than a year.
- The rapid rise to up to $13,800 by the summer of 2019 was partly fueled by Facebook’s stablecoin effort, Libra.
- On March 11, 2020, a historic decline happened. BTC’s price plummeted by more than 50% in a single day, temporarily reaching a low of about $3,800. After the initial shock subsided, the Bitcoin price rose to as high as 7,000 USD in a matter of days.
- As of 2021, Bitcoin is having one of the best performances ever with the current all-time high at $64,863, reached on April 14, 2021.