Bitcoin price is a topic that never fails to attract considerable attention and speculations from investors and traders in the financial technology world. What is the current price of Bitcoin? What is its predicted price five years from now? Read on to learn about the price history of bitcoin, as well as experts’ speculations of its future.
Bitcoin – A Volatile Cryptocurrency
Bitcoin was created and launched in 2009 as the first cryptocurrency-based currency in the world by Satoshi Nakamoto. Currently, Bitcoin is the largest digital currency in the world in terms of market capitalization, which is evaluated at roughly $257M in November 2020. While it has only existed shortly for a decade, Bitcoin prices have undergone considerable fluctuations that surprised even experienced traders and analysts.
Bitcoin Price Fluctuations Over a Decade
When Bitcoin was first issued in January 2009, its initial price was at $0.00. The value of Bitcoin is inherently arbitrary as it is not issued by any centralized banks or exchanges. In 2013, Bitcoin started to gain its foothold in the financial world. Bitcoin price took off for the first time in 2013, starting at $13.50 per bitcoin, rocketing to $220 in early April then plummeting to $70 by the middle of the month.
In 2011, the first cryptocurrency competitors of Bitcoin appeared and the public interest in cryptocurrencies soared. In 2012 and 2013, the value of Bitcoin rose again as the token got featured on multiple media outlets. Bitcoin started to attract attention from both users and investors when retailers opened up to the possibility of using bitcoin in transactions. However, the usage of Bitcoin in market transactions was short-lived. In 2013, the U.S federal government prohibited SilkRoad, a major marketplace using Bitcoin due to its illegal black market transactions.
Not long after, in 2014, a major hack of Mt. Gox, a Tokyo-based exchange, resulted in 750,000 BTC being stolen. This led to a temporary yet serious crisis in the reputation of the cryptocurrency and a negative impact on its price. At the same time, false rumors were circulating that Bitcoin was banned in China. This stirred up uncertainty and concerns among investors and drew Bitcoin into a bearish market between $300 and $400.
Bitcoin experienced a positive turn in 2015 and 2016 when it exited from the bearish market. In 2016, digital currencies including Bitcoin were regulated to become a currency proper in Japan. Alongside with the rise in confidence and demand for digital currencies, Bitcoin price soared from $400 to nearly $1,000 by the end of the year.
2017 was the ultimate spotlight in the performance of Bitcoin price throughout the history of its existence up to now. The exponential rise in the market value of Bitcoin was unprecedented and mind-baffling, even to experts in the field. In December 2017, Bitcoin reached a new height as its price soared up to very close to $20,000 per coin. Financial critics referred to the craze around Bitcoin as the price bubble and predicted that it wouldn’t last long before crashing. Indeed, the price dropped to $7,000 by April 2018, then $3,500 by November 2018 just as quickly and abruptly as when it rose.
Up to now, Bitcoin has undergone four market cycles, which have ranged between 600 to 1,050 days. As the co-founder of 10T Holdings, Dan Tapiero commented, Bitcoin holders should be prepared to be patient as Bitcoin has accumulated a considerable dollar value at present. Although the increase in its price will not be as sharp in the near future as in previous years, the price end point of Bitcoin at the end of this current ongoing cycle will still be very high.
What is the Price of Bitcoin in 2025?
Besides the cyclic volatility seen over the years, the value of Bitcoin is particularly difficult to anticipate this year due to the impacts of coronavirus. Bitcoin price hit the lowest point at $5,000 in March, then has gradually recovered to $13,000 as of November.
In 2025, the price of Bitcoin would rise to $100,000 based on past Bitcoin trends, according to Mike McGlone, a Bloomberg Intelligence analyst. Four years was the amount of time Bitcoin needed to rise from the market valuation of $1,000 in 2013 to a whopping $10,000 in 2017. Based on this historical timeframe of maturity, Bitcoin is expected to rise to $100,000 within five years from now.
While $100,000 already seems like a considerable amount, Bitcoin price is expected to skyrocket to a colossal market value of $1M by Raoul Pal, a former Goldman Sachs hedge-fund chief. Pal predicts that institutions would continue to pour money into Bitcoin, which he calls “an enormous wall of money”.While the economy is entering an insolvency phase that requires central banks to take actions to fully recover from the pandemic, institutions and funds will be shifting a large portion of their portfolios towards the purchase of Bitcoin.
The key drivers behind the rise in the value of Bitcoin are thought to come from a growing demand of institutional investors, its increasing hashrate, the increasingly limited supply of Bitcoin and the staggering global economy under the impacts of COVID-19 this year.
The Future of Bitcoin
While the future of bitcoin remains an unanswered question for many analysts and critics, the adoption of Bitcoin is expected to take place in retail, investment funds, endowments, and more. Major institutional investors are waiting for the technological pipelines to be ready before they can start investing in large volume. The general outlook on Bitcoin in five years is positive, considering that it is on the radar of investors and the technology is constantly being improved to satisfy the growing interest in its purchase.