Bitcoin is the first and most capitalised cryptocurrency in history, built on blockchain technology. Throughout its existence, it has repeatedly proven its potential for investors. Due to its price stability and its appeal as a store of value to protect against inflation, BTC is often referred to as “digital gold.” But has this digital asset always been as expensive and successful?
In this comprehensive guide, the itez team will tell you a little more about Bitcoin and its history. Together, we’ll take a look at Bitcoin historical data and share the most up-to-date information on the Bitcoin price timeline.
Introduction to Bitcoin Price History
The Early Days of Bitcoin
Bitcoin made its debut on the market in January 2009. The cryptocurrency was created by the mysterious developer, or possibly a group of developers, under the pseudonym Satoshi Nakamoto. At that time, BTC had neither market capitalisation nor any real value — it was simply an experimental project.
Satoshi Nakamoto's letter to a group of crypto enthusiasts, in which he introduced the concept of Bitcoin
However, over the next few years, this digital currency managed to capture the interest and recognition of its first supporters. Let’s take a moment to recall the most memorable events from cryptocurrency history.
Bitcoin trading became possible on 17 March 2010, when the first ever cryptocurrency exchange BitcoinMarket.com was launched. Later that year, in May, the first-ever purchase of goods using Bitcoin took place, marking the beginning of Bitcoin's price history. Crypto enthusiast Laszlo Hanyecz exchanged 10,000 bitcoins for two pizzas. This transaction became the first-ever exchange of coins for goods in the cryptocurrency industry. Every year, Bitcoin enthusiasts remember this day, 22 May, as Bitcoin Pizza Day.
The Bitcoin Pizza Transaction
As for the historical Bitcoin prices, by the end of 2011, the exchange rate had risen to $4.25. The growth continued into 2012, when Bitcoin increased from $4.25 (1 January) to $13.51 (31 December). Over the 12 months, the cryptocurrency grew by 217.88%.
The First Major Rally
2013 became a record-breaking year in Bitcoin’s value history. The cryptocurrency grew from $13.51 (1 January) to $751 (31 January). In just one year, the coin surged by an astronomical 5,457%, showing the extreme volatility of Bitcoin prices. On 13 November 2013, a local peak was reached, with Bitcoin priced at $1,163. The next time Bitcoin would reach this level was in January 2017.
Bitcoin price chart showing price fluctuations from the end of 2011 till the start of 2016. Source: TradingView
Key Milestones in Bitcoin’s Price History
The 2017 Bull Run
Between 2016 and 2020, Bitcoin continued to evolve. In 2016, its price increased from $430 (1 January) to $963 (31 December), representing a 124% rise over the year. By the end of 2017, Bitcoin had reached $14,156, marking a staggering 1,370% increase from the start of the year. A local peak was recorded on 17 December, when Bitcoin briefly approached $20,000.
This surge is often referred to as speculative — at that time, cryptocurrencies were primarily purchased by Asian investors for speculative purposes. 2017 also saw several Bitcoin hard forks, which led to the creation of new coins such as Bitcoin Cash (BCH) and Bitcoin Gold (BTG).
The 2018 Bear Market
However, things changed quickly when the first major bear market hit in 2018. Bitcoin’s price dropped from $14,156 (1 January) to $3,742 by the end of December, representing an 80% decrease.
At the same time, major platforms like Google, Twitter, and Meta (formerly Facebook) banned cryptocurrency-related advertisements. Meta later reversed its stance, allowing cryptocurrency ads again, but only after a moderator review process.
Recovery and Growth (2019-2020)
In 2019, Bitcoin’s price began to rise once again. The year started with BTC priced at $3,742, and by 31 December, it had reached $7,193. In 2020, Bitcoin continued its rapid ascent, increasing from $7,193 to $28,949 — a 302% growth for the year.
In September 2019, the institutional Bitcoin service Bakkt launched, but it didn’t gain the expected popularity among investors. As a result, Bitcoin’s price dropped from approximately $10,000 to $6,600 over the following months.
Bitcoin price chart showing price fluctuations from 2016 till 2020. Source: TradingView
Despite the economic crisis caused by the COVID-19 pandemic, cryptocurrencies began to rise in 2020. In March, the price of Bitcoin fell from $10,200 to $3,800, but it soon started recovering, reaching $19,000 by the end of the year.
Recent Trends and Price Movements
The 2021 Bull Run and Beyond
Between 2021 and 2023, Bitcoin once again managed to surprise investors. In 2021, its price rose from $28,949 (1 January) to $46,306 (31 December), marking a 59.98% increase over the year. During this period, a local peak was reached, with Bitcoin approaching $69,000 on 10 November 2021.
In 2022, Bitcoin price movements continued, but this time in the opposite direction. Its value dropped from $46,306 (1 January) to $16,547 (31 December), reflecting a 64.27% decline.
However, in 2023, Bitcoin showed impressive growth once again. On 1 January, the cryptocurrency was trading at $16,547, but by 31 December, the price had surged to $43,196, representing a 160.98% increase.
Bitcoin price chart showing price fluctuations from 2021 till 2023. Source: TradingView
As of the time of writing this review, BTC is already trading above $193,000. The cryptocurrency welcomed November 2024 with a series of Bitcoin all-time high updates, breaking the $100,000 barrier for the first time in history. According to the latest data, Bitcoin’s ATH is set above $108,000.
Impact of Global Events on Bitcoin Prices (2021-2024)
Since 2021, many countries have started to pay increased attention to digital assets, adding new chapters to Bitcoin’s milestones. For example, in 2021, China imposed a ban on cryptocurrency mining within its borders. Meanwhile, El Salvador made the decision to recognise Bitcoin as legal tender.
The following year, 2022, was marked by less favourable events for the crypto industry. The year is remembered for the collapse of FTX, one of the largest cryptocurrency exchanges, and its affiliated investment firm, Alameda Research. Prior to that, the market was shaken by the downfall of another prominent crypto project, Terraform Labs.
2023 continued to be a challenging year. The US SEC (Securities and Exchange Commission) increased pressure on the digital assets industry, classifying many coins as illegally issued securities, making their purchase, sale, and trading illegal. One of the most high-profile cases was the legal battle between fintech startup Ripple and the SEC.
Bitcoin price chart showing price fluctuations throughout 2024. Source: CoinGecko
However, 2024 brought a much-needed positive turn and completely changed investment trends. This year, for the first time in the US, spot Bitcoin ETFs began trading. This exchange-traded product significantly boosted interest from institutional investors, thereby greatly accelerating the cryptocurrency adoption rate. As a result, in November 2024, BTC set a new all-time high above the psychologically significant $100,000 level and continued to rise.
Future Projections and Market Predictions
The future Bitcoin market trends will remain an active topic of discussion for all players in the crypto space. Most investors believe in Bitcoin's long-term potential, and its recent growth in November and December 2024 only further underscores that BTC’s growth potential is far from exhausted.
In all likelihood, Bitcoin will continue to rise in the long term. The very mechanism of the cryptocurrency is deflationary due to its halvings, which take place approximately every four years. This process limits the total supply of BTC to 21,000,000 coins, ensuring a sustained level of demand.
In addition to this, institutional adoption and Bitcoin's growing economic impact point to increasing global interest — from retail traders to investment giants and even entire nations. All these factors create a favourable environment for the cryptocurrency’s future growth.
Conclusion
Looking back at Bitcoin's price history, one can notice that throughout its existence, this digital asset has experienced both significant surges and dramatic declines. Bull markets are followed by bear markets, and this cycle is likely to continue indefinitely.
Despite Bitcoin’s clear investment appeal, it is always important to bear in mind the risks involved. Always invest only what you can afford to lose, and adhere to sound risk and money management principles. Only then can you be confident that Bitcoin will be a beneficial asset for you.
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This article is not investment advice or a recommendation to purchase any specific product or service. The financial transactions mentioned in the article are not a guide to action. It’s not intended to constitute a comprehensive statement of all possible risks. You should independently conduct an analysis on the basis of which it will be possible to draw conclusions and make decisions about making any operations with cryptocurrency.
