The power of crypto currency from $5 dollar to $50000 dollars in 2 months
By: Crypto Arena
Tags: Bitcoin News, Cryptocurrency Investment, Bitcoin, Cryptocurrency, Bitcoin Mining

The power of crypto currency from $5 dollar to $50000 dollars in 2 months crypto Arena Jul 15·4 min read

The price changes for Bitcoin alternately reflect investor enthusiasm and dissatisfaction with its promise. Satoshi Nakamoto, Bitcoin’s inventor, designed it for use as a medium for daily transactions and a way to circumvent the traditional banking infrastructure after the 2008 financial collapse. While the cryptocurrency has yet to gain mainstream traction as a currency, it has begun to pick up steam through a different narrative—as a store of value and a hedge against inflation.

Though this new narrative may prove to hold more merit, the price fluctuations of the past primarily stemmed from retail investors and traders betting on an ever-increasing price without much grounding in reason or facts. But Bitcoin’s price story has changed in recent times. Institutional investors are trickling in after the maturing of cryptocurrency markets and regulatory agencies are crafting rules specifically for the crypto. While Bitcoin price still remains volatile, it is now a function of an array of factors within the mainstream economy, as opposed to being influenced by speculators looking for quick profits through momentum trades.

KEY TAKEAWAYS

Since it was first introduced to the world more than a decade ago, Bitcoin has had a choppy and volatile trading history.

Bitcoin's price has undergone multiple bubbles in a short history.

The factors influencing its price have changed with Bitcoin's evolution as an asset class.

The narrative surrounding Bitcoin has shifted from being a currency to a store of value as a hedge against inflation and uncertainty around the U.S. dollar's future purchasing power.

Bitcoin Price History

For the most part, Bitcoin investors have had a bumpy ride in the last ten years. Apart from daily volatility, in which double-digit inclines and declines of its price are not uncommon, they have had to contend with numerous problems plaguing its ecosystem, from multiple scams and fraudsters to an absence of regulation that further feeds into its volatility. In spite of all this, there are periods when the cryptocurrency’s price changes have outpaced even their usually volatile swings, resulting in massive price bubbles.

The first such instance occurred in 2011. Bitcoin's price jumped from $1 in April of that year to a peak of $32 in June, a gain of 3200% within three short months. That steep ascent was followed by a sharp recession in crypto markets and Bitcoin's price bottomed out at $2 in November 2011. There was a marginal improvement the following year and the price had risen from $4.80 in May to $13.20 by August 15.

2013 proved to be a decisive year for Bitcoin's price. The digital currency began the year trading at $13.40 and underwent two price bubbles in the same year. The first of these occurred when the price shot up to $220 by the beginning of April 2013. That swift increase was followed by an equally rapid deceleration in its price and the cryptocurrency was changing hands at $70 in mid-April.

But that was not the end of it. Another rally (and associated crash) occurred towards the end of that year. In early October, the cryptocurrency was trading at $123.20. By December, it had spiked to $1156.10. But it fell to around $760 three days later. Those rapid changes signaled the start of a multi-year slump in Bitcoin's price and it touched a low of $315 at the beginning of 2015.

The fifth price bubble occurred in 2017. The cryptocurrency was hovering around the $1,000 price range at the beginning of that year. After a period of brief decline in the first two months, the price charted a remarkable ascent from $975.70 on March 25 to $20,089 on December 17.

The 2017 hot streak also helped place Bitcoin firmly in the mainstream spotlight. Governments and economists took notice and began developing digital currencies to compete with Bitcoin. Analysts debated its value as an asset even as a slew of so-called experts and investors made extreme price forecasts.

As in the past, Bitcoin's price moved sideways for the next two years. In between, there were signs of life. For example, there was a resurgence in price and trading volume in June 2019 and the price surpassed $10,000, rekindling hopes of another rally. But it fell to $7,112.73 by December of the same year.

It was not until 2020, when the economy shut down due to the pandemic, that Bitcoin's price burst into activity once again. The cryptocurrency started the year at $7,200. The pandemic shutdown, and subsequent government policy, fed into investors' fears about the global economy and accelerated Bitcoin's rise. At close on November 23, Bitcoin was trading for $18,353.

Continued institutional interest in the cryptocurrency further propelled its price upwards and Bitcoin’s price reached just under $24,000 in December 2020, an increase of 224% from the start of 2020. It took less than a month for Bitcoin to smash its previous price record and surpass $40,000 in January 2021. At its new peak, the cryptocurrency was changing hands at $41,528 on Jan 8, 2021. Three days later, however, it was at $30,525.39. Now Bitcoin reached to $ 32000 supported by Bitcoin lovers.

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