Ten Years of Fluctuation: A Comprehensive Review of Bitcoin Market from 0 to 300 Billion US dollars

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Understand the price fluctuations of Bitcoin over the past 10 years.

Wang FengOn the occasion of the 10th anniversary, Mars Finance (ID: hscj24h) is planning special reports, including "Bitcoin Decade: Changed and Going to Change", "Bitcoin Decade: An Enthusiastic History of Technological Evolution", "A Comprehensive Review of Bitcoin Market from 0 to 300 Billion US dollars", "The Road to the Future: Industries That Will Be Changed by Blockchain" Articles such as' Coin Circle: The Thousand Faced Heroes of the Blockworld 'take you through a comprehensive review of Bitcoin and the blockchain it has spawned, as well as the significant changes it is about to bring to this world.

2008-2010: Born in 3 years with a market value exceeding one million US dollars

On November 1, 2008, Bitcoin was officially launched online, but for more than a year before and after its release, it did not have market value and was more like a toy for tech geeks.

On January 3, 2009, Satoshi Nakamoto dug up 50 bitcoins from a small server in Helsinki, Finland. Since then, more and more Internet users have been "mining", but the mainstream market has not recognized its value.

The turning point occurred on May 21, 2010. On this day, American programmer Laszlo Hanyecz exchanged 10000 Bitcoins for two pizzas, equivalent to a market price of $30, and the initial value of Bitcoin was fixed at 0.3 cents.

After Bitcoin generated value, the mining fever was ignited, and the first Bitcoin exchange, Mt. Gox, was born. This brought about the first sharp price fluctuation of Bitcoin in July 2010, with a tenfold increase in 5 days, and the price rose from $0.008 to $0.08. The public's attention to the special currency continues to increase, with the emergence of portable devices, option contracts, mining pools, etc.

In November 2010, the price of a single Bitcoin on Mt. Gox, the world's largest Bitcoin trading platform, exceeded $0.5, an increase of approximately 167 times from the initial price, and the market value of Bitcoin exceeded $1 million.

2011-2012: First roller coaster like oscillation

In February 2011, Bitcoin reached an important milestone: its price was on par with the US dollar. Subsequently, Bitcoin was launched on exchange trading platforms with sterling, Brazilian currency, and Polish currency.

Under the coverage of mainstream media such as Time magazine and Forbes, Bitcoin has entered the public eye, and more and more investors are rushing in crazily. On June 8, 2011, the transaction price of a single Bitcoin reached a record high of $31.9, an increase of over 10000 times from its initial price.

However, in August 2011, the Bitcoin trading platform Mt. Gox broke out in a "hacker incident", with over 78000 Bitcoins missing. The security of digital currencies was questioned by investors, and Bitcoin prices continued to decline. By February 2012, a single Bitcoin rose below $2, a decrease of 1395% compared to its previous peak.

However, with the increasing public awareness of Bitcoin, several real economy suppliers have announced acceptance of Bitcoin payments since June 2012. The price of Bitcoin rebounded to $8.77 in July of that year.

Financial industry leaders also saw the historical mission of Bitcoin and established the Bitcoin Foundation in the second half of 2012. At the same time, the first Bitcoin Conference was held in Europe, and Bitcoin prices continued to rebound.

In December 2012, the supply of Bitcoin blocks was halved for the first time, and the world's first Bitcoin exchange was born in France. The price of Bitcoin returned to its peak, rising to 13.69 dollars.

2013: Exceeding international gold prices for the first time

2013 was a year of rapid development for Bitcoin.

In March 2013, Cyprus experienced a debt crisis, and the government responded by freezing bank transfer transactions and increasing taxes on depositors. The depositors in Cyprus are in danger, and Bitcoin, as a decentralized and super sovereign online currency, has received the favor of European safe haven funds, soaring from over $30 to $265 in just a few days.

The recent surge in Bitcoin prices has truly brought global attention to its significance and re-examined its actual value. But soon after, the market became more rational, and Bitcoin plummeted to $68.

Since the second half of the year, most European countries have successively introduced Bitcoin issuance policies, which have attracted the attention of the people of various countries. Bitcoin has resumed its skyrocketing mode, and as of December 2013, the price of Bitcoin has exceeded $1147, surpassing the international gold price for the first time.

On December 5, 2013, the People's Bank of China and five other ministries issued a notice on preventing Bitcoin risks. Starting from this day, Bitcoin officially entered the downward channel.

2014-2016: Market continues to be sluggish

From 2014 to 2015, the Bitcoin market fell into a downturn, with overall prices showing a stable downward trend and no significant fluctuations. The reason is that the digital currency market is less frequently affected by external interference, the number of new investors continues to decrease, and there is a lack of growth space.

Bitcoin Price Trend Chart from 2014 to 2016 (Source: Non Small)

In February 2014, the Mt. Gox trading platform announced bankruptcy, and the price of Bitcoin quickly dropped from $600 to $102, a drop of 80%.

At the beginning of 2015, although the price of Bitcoin rebounded to $300, it fell to $170 on January 14th, a drop of 37% in two days. The price rebounded in the following 12 days as Coinbase's new round of financing was successful, with Bitcoin prices exceeding $300.

In 2016, influenced by factors such as the halving of Bitcoin production, Brexit, the US election and the strength of the Asian market, the price of Bitcoin rebounded, showing a further upward trend. In December 2016, the price of Bitcoin returned to $1000.

2017: Maximum market value of 300 billion US dollars

2017 was a year when Bitcoin made history. This year, Bitcoin frequently made headlines in financial media, with its price rising from $970 at the beginning of the year to nearly $20000 in December 2017, a year-on-year increase of up to 1700%. The highest daily trading volume during the year reached $55.659 billion, equivalent to the average daily trading volume of the New York Stock Exchange in 2017.

2017 Bitcoin Price Trend Chart (Source: Non Small)

From January to May, Bitcoin prices slowly increased, exceeding $2730 by May 25th, attracting a wider range of investors.

In June and July, the price of Bitcoin plummeted, causing some panic in the market due to the news of Bitcoin's bifurcation.

In mid August, the price of Bitcoin exceeded $4000. Afterwards, the People's Bank of China announced that ICO would be classified as illegal financial activity and all domestic transactions would be suspended, leading to short-term fluctuations in Bitcoin prices, with a decline of 28%.

However, with the continuous influx of Bitcoin investors such as Japan and South Korea, as well as the release of futures trading and the promotion of financial industry media, Bitcoin prices quickly rebounded, reaching $19800 on December 17, with a total market value exceeding $300 billion. Subsequently, Bitcoin began to plummet, and on December 31, the closing price fell below $11000.

In 2018, the market value shrank by nearly 70%

2018 Bitcoin Price Trend Chart (Source: Non Small)

In 2018, the Cryptocurrency exchange experienced a general slump in the Cryptocurrency market due to strict supervision worldwide and the frequent theft of Cryptocurrency, which raised questions about security.

In January 2018, the price of Bitcoin collapsed, dropping to $10396 on January 18th. Although there was a slight rebound thereafter, it was difficult to reverse the decline. On February 7th, the price of Bitcoin fell to $7053.

Since February, the price of Bitcoin has been fluctuating and is now hovering around $6300, a 66.8% decrease from its historical peak.

During this period, Bitcoin prices have rebounded several times due to favorable policies, but cannot continue to lead the rise.

The reasons for this can be summarized in the industry as follows:

1. The myth of "circulating money" is shattered. The 2017 ICO project was too fanatical, boosting the market value of the entire cryptocurrency market. But in 2018, investors found that many projects could not be implemented at all, resulting in pessimistic market sentiment and severe selling.

2. Various countries' regulations emerge endlessly. The increasing regulation of digital currencies worldwide can bring panic to the market and pressure on digital currency trading.

3. Garbage currency is gradually being cleared. Many projects lack liquidity and progress slowly after ICO, and tokens have been gradually cleared by major exchanges.

4. Affected by the market environment, miners and project parties are more inclined to sell their hoarded coins and quickly obtain working capital.

More special reports:

A Review of Bitcoin's Ten Years: What has changed and is about to change

The "Character Story" Chain Circle Coin Circle: The Thousand Faced Heroes of the Blockchain World

Technology Chapter "Bitcoin Ten Years: An impassioned history of technological evolution

Prospects: Future Paths: Industries that are about to be Transformed by Blockchain

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