A Historical Look at Bitcoin Price: 2017-2018
Since its introduction to the financial market in 2009, the cryptocurrency bitcoin has experienced many ups and downs price-wise, but overall during its first few years, bitcoin value rose from literally nothing to somewhat dizzying heights. In the past couple of years, the bitcoin has really made its mark as a digital currency. Bitcoin value has recently soared to its highest reach and also experienced a catastrophic crash - along with everything in between. Here at Trading Education, we take a close look at bitcoin price history during 2017 and 2018 so far, as well as some predictions regarding its future fortunes.
2017: Wild times
As Frank Chaparro of Business Insider UK reported in December of that year, 2017 saw bitcoin having something of a ˜wild run', with some large and rather volatile price spikes and dips. At the beginning of 2017 bitcoin value sat just below $1,000, but over the course of the next 12 months it rose and fell and eventually rose by an astonishing 1,300% by the end of the year, achieving a value of over $14,500. Bitcoin has always received very mixed reviews in the financial market, and many investors and financial experts have belittled it, but by the end of 2017 even Wall Street began listening and taking bitcoin seriously. So what happened to put this digital currency on the financial map?
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Early 2017: Mixed fortunes
In January 2017, bitcoin faced a negative backlash after some problems in the Chinese market. Bitcoin had been subject to investigation concerning rumours of money laundering and unauthorised use, and Chinese investors were warned against virtual investments. The strong influence of China and the yuan on the international financial market resulted in a bear market and a drop in bitcoin price from $1,300 to $786 during the month.
By March, the value of the bitcoin had risen again to around $1,300. However, a failed application by American entrepreneurs the Winklevoss twins to the Securities and Exchange Commission for a bitcoin exchange-traded fund (ETF) resulted in a loss of confidence in the bitcoin and its non-regulated market use and potential for fraudulent activity. Bitcoin value saw a further dip to $935 in a three-week period following this failed ETF bid and the ensuing media attention. This downward turn was soon turned around though when in April the bitcoin was recognised as legal currency in Japan.
Mid-2017: A split and a rise
At the beginning of August 2017, a split occurred in bitcoin's network. This came about after a bitcoin price spike to $3,000 in mid-July that was followed only a week later by a dip to $1,900. These volatile prices changes were the results of concerns about the ultimate split which did indeed take place, but shortly afterwards the market saw confidence return and bitcoin value carried on upwards with a rise to around $5,000.
China still was not happy with cryptocurrency use, and a Chinese ban on initial coin offerings in September 2017 caused bitcoin value briefly to crash to $3,226 before resuming its uphill climb. In early November, in spite of China's disapproval, bitcoin price reached almost $7,500. That wasn't the end of its ascent during 2017, though, as December saw the bitcoin reach its highest value yet.
Bitcoin futures were approved by the Commodities Futures Trading Commission at the beginning of December 2017. This meant that investors could bet on bitcoin futures as they would any other currency and it resulted in a massive surge in bitcoin value to almost $20,000 at its highest point during the month before settling at around $15,000 at the end of the year. As 2018 dawned, predictions were flying in about bitcoin's continued success.
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2018: A bitcoin crash
A recent report from The Independent explains some thoughts about why the first half of 2018 has seen bitcoin value drop dramatically since its turbulent but successful time in 2017. As of mid-June 2018, bitcoin price sat at below $6,500 after a number of substantial price dips, and experts are not entirely convinced of what lies ahead.
The year thus far has not seen much in the way of significant events in the financial world that could be seen to cause this downward trend in bitcoin price history, but recent discussion among financial pundits has been around the manipulation of the market having been at the root of bitcoin's perhaps inflated 2017 success. The University of Texas has released a study which would appear to confirm this, fuelling the debate, and it comes hot on the heels of a South Korean cryptocurrency hacking incident, which has inevitably also contributed to reduced confidence in digital currencies including the bitcoin. China also continues to frown upon cryptocurrency fundraising, and the short-term future of the bitcoin is certainly not assured.
The future of bitcoin
In spite of short-term insecurity, experts are confident that cryptocurrencies including the bitcoin will make a good recovery longer term, and predictions in both the Independent and from CoinGape's Stan Peterson are optimistic for 2018 and beyond.
CoinGape quotes financial expert John McAfee's prediction of a bull market and a stellar high of $1 million for the bitcoin by 2020, and Tim Draper's more conservative but still optimistic prediction of $250,000 by 2022. Saxo Bank's Kay Van-Peterson is quoted as predicting that the bitcoin will achieve a value of $100,000 by the end of 2018, while Wall Street adviser Tom Lee's prediction of $25,000 and investment company Pantera Capital's of $20,000 by year-end are again much more conservative, but still indicative of overall confidence in the future of the bitcoin.
Predictions in The Independent tell a similar story, with the crash of 2018 so far affecting thoughts about the future of bitcoin value, but only about how large its gains will be, not whether it will rise, which seems certain. The only proviso is a wise one: to make sure that regulation comes into effect to protect cryptocurrency use in line with other currencies. This, in turn, will further assure the future of the bitcoin, making it a genuine player in the financial markets. At Trading Education, we aim to provide the most useful and up-to-date information for traders, so check our blog for past and current bitcoin prices.
Bitcoin Price Milestones (USD)
- $0.10 Oct 10, 2010
- $1.00 Feb 9, 2011
- $10.00 Jun 2, 2011
- $100 Apr 3, 2013
- $1,000 Nov 8, 2013
- $2,000 May 20, 2017
- $3,000 Jun 11, 2017
- $4,000 Aug 13, 2017
- $5,000 September 1, 2017
- $10,000 November 28, 2017
- $100,000 ?
- $1,000,000 ?
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