Bitcoin has experienced five significant price peaks since its creation in 2009. Bitcoin has an average growth of 200% per year. As of August 2021, Bitcoin’s market capitalization is around $710,000,000,000, dominating nearly 50% of the cryptocurrency market.

Events like the hack of the Mt. Gox in 2014 could explain some of Bitcoin’s short- and medium-term price behavior. We can get a more macro view of Bitcoin by looking at its price using technical analysis patterns, fundamental analysis, and market sentiment in the long term. Can use a combination of all of these methods to get a multifaceted view of price history.

Bitcoin price history

1. Price from 2011 – 2021

Year	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020	2021*
Highest	T6 $31	T8 $15	T11 $1242	T1 $995	T11 $504	T12 $984	T12 $19804	T1 $17222	T6 $13870	T11 $29307	T11 $68997
Lowest	T2 $0.52	T2 $3.88	T1 $13	T11 $275	T8 $162	T1 $352	T1 $748	T12 $3124	T1 $3331	T3 $3880

Data from Tradingview according to the price of BTC/USD traded on the Bitstamp exchange. The 2021 data is not over yet.

2. Bitcoin price growth vs. gold, index

Year	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020
Bitcoin	1473%	186%	5507%	-58%	35%	125%	1331%	-73%	95%	301%
Gold	9,6%	6,6%	-28,3%	-2,2%	-10,7%	8,0%	12,8%	-1,9%	17,9%	24,8%
NASDAQ 100	3,4%	18,1%	36,6%	19,2%	9,5%	7,1%	32,7%	-0,1%	39,0%	48,6%

When comparing Bitcoin with the NASDAQ 100 and gold, we see that returns have far exceeded these two traditional assets. One can also see its volatility, as Bitcoin’s annual loss is also more enormous by a percentage than any loss experienced by gold or the NASDAQ 100.

3. Bitcoin Price Movement Milestones

For the most part, Bitcoin investors have had a bumpy ride over the past 13 years or so. Besides the daily volatility, whose price rises and falls in double digits is not uncommon, they have faced many problems that harm its ecosystem, from numerous scams to the lack of regulation leading to its volatility. Even so, there are periods where the price changes of cryptocurrencies have outstripped even their regular fluctuations, leading to massive price bubbles.

• The first such instance occurred in 2011. The Bitcoin price rose from $1 in April of that year to a peak of $32 in June, up 3,200% within three months. A sharp drop followed it in the crypto market, and Bitcoin price bottomed out at $2 in November 2011. The following year, there was a slight improvement, and the price was up from $4.80 in May to $13.20 on August 15.
• 2013 was a decisive year for the price of Bitcoin. The digital currency started trading at $13.40 and experienced two price bubbles in the same year. The first of these occurred when the price surged to $220 in early April 2013. An equally rapid drop followed that rapid price rise, and the cryptocurrency changed hands at $70 in mid-April.
  Nevertheless, that is not the end of it. At the beginning of October, the cryptocurrency was trading at $123.20. By December, it had spiked to $1,156.10. However, it fell to about $760 three days later. Those rapid changes signaled the beginning of Bitcoin’s price decline in the following years, and it hit as low as $315 in early 2015.
• The fifth price bubble occurred in 2017. The cryptocurrency was hovering around the $1,000 price zone earlier that year. After a brief decline in the first two months of the year, the price rose significantly from $975.70 on the 25th to $20,089 on the 17th. Governments and economists took notice and started to develop digital currencies to compete with Bitcoin. Analysts have debated its value as an asset class even as many experts and investors have made extreme price forecasts.
  As before, the Bitcoin price remained unchanged for the next two years. In between, there are signs of life. For example, there was a price and volume resurgence in June 2019, and the price broke through $10,000, rekindling hopes of another rally. However, it fell to $7,112.73 in December of the same year.
• Until 2020, when the economy was recession due to the pandemic, the Bitcoin price exploded again. The pandemic shutdown and subsequent government policy have increased investors’ concerns about the global economy and accelerated Bitcoin’s rally. At the close on November 23, Bitcoin was trading for $18,353. The pandemic destroyed much of the stock market in March. However, the stimulus measures have had a direct impact on the market. After releasing economic stimulus packages, the entire stock market, including cryptocurrencies, saw a strong recovery from the March lows and even continued to break through the highest. However, that raises concerns about inflation. The printing of money by governments and central banks has helped strengthen the narrative of Bitcoin as a store of value as its supply is capped at 21 million. This story is starting to attract the interest of institutions rather than just retail investors, who were primarily responsible for the price increase in 2017.
• By March 2021, the Bitcoin price reached over $60,000. The continued institutional interest in cryptocurrency further drives its price up. Bitcoin took less than a month to break the previous price record and surpass $40,000 by January 2021. Bitcoin peaked at over $64,000 on April 14, 2021. However, in the summer, the price fell 50%, touching $32,000. Fall 2021 sees another bull run, with prices hovering around $50,000 but accompanied by a steep drop to around $42,500
• On November 5, 2021, bitcoin once again hit an all-time high of $68,998.

Factors affecting the initial Bitcoin price

Next, let us explore the factors that influence transactions and prices. These have changed over time and changed from the early days of Bitcoin.

In 2009, Bitcoin was an asset in an extremely niche market with low liquidity. Users on BitcoinTalk and other forums make early transactions, who see Bitcoin as a decentralized currency.
Satoshi Nakamoto mined the first block on January 3, 2009, with a reward of 50 bitcoins. After nine days, he sent 10 BTC to Hal Finney, which was the first Bitcoin transaction. On May 22, 2010, Bitcoin was below $0.01. That day was also the day the first Bitcoin commercial transaction took place. It was Laszlo Hanyecz buying two pizzas for 10,000 BTC.

As the price and popularity of Bitcoin increased, a small industry emerged. Unregulated, the industry is still evolving and creating increasingly favorable conditions for transactions and purchases. These include cryptocurrency exchanges and deep web marketplaces. The price of Bitcoin is often significantly impacted when these markets and exchanges are hacked, closed, or regulated. Several exchanges holding a significant supply of Bitcoin were hacked, causing massive price shocks and a loss of confidence in the market.

Factors affecting the current Bitcoin price

Bitcoin now shares a lot in common with more traditional assets. Governments and institutions are starting to get involved and interested in cryptocurrencies.

The increasing adoption of Bitcoin in retail, finance, and politics also means that more and more factors influence the price and transactions of Bitcoin today. Institutional investments in cryptocurrencies are also on the rise, giving speculation a more significant role. The factors that influence Bitcoin’s transactions today are very different from those that influenced it in its early days. We discuss the most significant factors.

1. Regulations are much more present than in the early days of Bitcoin as governments begin to understand more about cryptocurrencies and blockchain technology. Tightening and loosening regulations each have their effects. Some of the changes in the price of Bitcoin are related to the banning of BTC in one country or its popularity in several others.
2. The state of the global economy is currently one factor that directly affects the price and transaction of Bitcoin. For example, people living in hyperinflationary countries have turned to cryptocurrencies as a hedge against inflation. Bitcoin is now viewed as a store of value, similar to gold. When confidence in the economy is low, people tend to buy the store of assets.
3.  Increasing acceptance in the mainstream from major companies could trigger Bitcoin rallies. Paypal, Square, Visa, and Mastercard have all influenced the crypto market, giving investors confidence. Retailers have even started accepting Bitcoin payments. A support drawdown can also trigger sell-offs, such as Elon Musk’s announcement on May 17, 2021, that Tesla stopped paying in Bitcoin. In this case, the price went from $55,000 per BTC to around $48,500 that same day.
4. Increased speculation and derivatives such as Bitcoin futures have fueled additional demand in the market. Instead of investing and holding BTC for its fundamental value, traders and speculators in the futures market often short BTC for a profit, putting downward pressure on the price. Bitcoin price is no longer based solely on its utility.

Quick question

At what price did Bitcoin start trading? Bitcoin first traded from around $0.0008 to $0.08 per coin in July 2010.

How much was one Bitcoin worth in 2009? The value of one bitcoin was $0 when it was first introduced in 2009. It was initially free to trade between early adopters.

What is the highest price that Bitcoin has reached? Bitcoin reached its all-time high of $68,998 on November 10, 2021.

What will one Bitcoin be worth in 2030? Many predict that Bitcoin will reach $200,000, but some believe that the price will drop and crash.