A careful observation of Bitcoin price history provides a good ground to predict a massive comeback.
In March 2019, someone posted in one of the social media platforms that “Bitcoin is dead.” Oh really?
Bitcoin generated serious doubts concerning its ability to stay at the top and its strength to proceed to trade above its all-time high after the market underwent a serious recession in 2018.
After the cryptocurrency dropped in price from near $20,000 on December 2017 to hover around the $4000 price zone, the digital asset struggled to bounce back in a bid to get back to its all-time high.
The cryptocurrency has faced a series of criticisms since 2012, and even at the point of its positive price growth, critics called it bubble as others even likened it to the Dutch Tulip Mania.. Bitcoin price at a point dropped by 80%, but still went ahead to recover and set a new price record. This kind of price stability and a market pullback is dominant in its price history.
Let’s Go Through Bitcoin’s Price History and Massive Comebacks
From 2009 to early 2010, Bitcoin had no or little value. According to research, a Bitcoin user called “Smoketoomuch” offered to sell 10,000 BTC for $50; however, nobody was interested enough to buy them. Around that time, people who engaged in Bitcoin transaction did it for fun.
In March 2010, Bitcoin began to gain value by pricing $0.003 per coin. The Bitcoin price made a significant rise to record $0.01 in May 2010. In July 2010, the price of Bitcoin surged by 900% to trade at $0.08.
Something interesting happened in 2011. In that year, the Electronic Frontier Foundation started accepting Bitcoin. Also, Wikileaks received donations in Bitcoin. This initiative gave the digital asset a worldwide recognition. The cryptocurrency ended up rising to $1 in February 2011, and its subsequent all-time high of $31 in July 2011.
The journey to the top was an interesting one. Electronic Frontier Foundation stopped accepting Bitcoin because of legal issues, and this slashed the price to $2 in December 2011. In April 2013, Bitcoin took a high jump to record $266. At this point, those who ignored Bitcoin in its early stage started taking another look at it.
A month after this bull-run, Bitcoin dropped to $130, and then took a further fall to $100 in June 2013. On 29 November 2013, Bitcoin jumped to $1292 and later fell to $1000.
In 2014, the Bitcoin price was subjected to two forces of the opposite direction. In January 2014, companies like the d Las Vegas Casino Hotel announced their intention to accept Bitcoin. This action was supposed to be a significant boost to the price, however, MT. Gox, one of the popular cryptocurrency exchanges got hacked in February 2014 and later filed for bankruptcy. This affected the price to hover between $550 and $750. The price took a further drop to trade between $450 and $750 in March 2014. In April 2014, Bitcoin was trading between $340 and $530.
The New Era of Bitcoin Comeback and another fall
The cryptocurrency struggled to get back to the thousand price zone after testing it in 2013. After some few years, companies started getting involved in Bitcoin. In January 2017, Japan announced the acceptance of Bitcoin as a legal payment method. Russia took a similar step, and these became a catalyst to the bitcoin price surge. Bitcoin responded by trading between $800 and $1150 in January 2017. At this point, Bitcoin was rising at a higher pace.
The digital asset traded at $2000 in May 2017, $4400 in August 2017, and then recorded an all-time high price of $5000 in September 2017.
On 12 September 2018, Bitcoin dropped to $2900. This price fall was over 50%. According to information, the price fall was as a result of the crackdowns of Initial Coin Offerings and Cryptocurrency exchanges in China. Right after the crackdowns, Bitcoin spiked in price to trade at $6180 in October 2017 and took a considerable jump to record $8100 in November 2017.
In just 30 days, Bitcoin recorded over 100% increase to record $17000 in price in December 2017 and later reached an all-time high of near $20,000. The reason for this rally was attributed to the halving event which happened in 2016. The next event scheduled to take place in 2020 is expected to cause a bull run.
What This Means to Real Investors
Bitcoin or cryptocurrency market is highly volatile and can be stable at some point, but its stability does not last.
Bitcoin underperformed in 2018, and some critics thought the cryptocurrency would never bounce back.
I will advise any Bitcoin critic out there that before drawing that conclusion, remember that it took Bitcoin about three years to rise to its highest price. Bitcoin moved to and fro on its price curve in 2014 until it showed what it was capable of in 2017.
Bitcoin investment rewards those who exercise patience. Throughout its price history, Bitcoin has shown a series of price falls but later rises to record a new all-time high.
What this means to investors is that Bitcoin can be a long-term investment or short-term investment at its own pace.
Just invest in Bitcoin or any good cryptocurrency out there and give it about three years to mature. Your investment can multiply within some few days, some few months or some few years.
Anybody who criticizes the coin based on its recent performance is not being fair to it considering the many hurdles it has jumped in its journey to the top.
Bitcoin has not failed. Trading at $8000 in 2019 from less than a dollar in 2010 is something the Bitcoin community should be proud of. On this day and age where Bitcoin transaction can be done on WhatsApp even makes the future brighter.
Success rewards those who wait.