How Has Bitcoin Hit An All-Time High?

The price of bitcoin, a cryptocurrency, reached $73,805.27 on March 14—the highest level in the history of 15 years. Less than two years have passed since a severe crypto crisis destroyed billions of dollars. Two big names in the industry were found guilty of breaking the law, Changpeng Zhao and Sam Bankman-Fried. Bitcoin fell below $17,000 in November 2022 after Bankman-Fried’s FTX collapsed.

Comprehending the Unexpected Drop in Bitcoin Prices

Early in March 2024, the value of Bitcoin increased, going up by 74% in relation to the post-exchange traded funds (ETF) movements. The big drop in stock prices that happened a few times in the last two weeks might mean that the strong upward trend in the stock market since late 2023 could be slowing down. This condition suggests

a time of stabilization for the larger crypto market. 

Given that Bitcoin is based on the motto that “what rises up must come down,” it was only a matter of time until it fell from such a high point. Every notable increase in asset prices throughout history has been immediately followed by an interval of adjustment.

Bitcoin has Achieved Significant Regulatory Successes

Legal victories against the U.S. Securities and Exchange Commission, or SEC, one of cryptocurrency’s main adversaries, have further helped increase the price of Bitcoin. The government organization had concerns about cryptocurrencies and has filed many lawsuits against firms it said were engaging in illicit activity. 

However, a judge decided to favour Ripple (one of those businesses) last July. A month later, a court of appeals in Washington determined that the SEC had mistakenly prevented a cryptocurrency company from attempting to establish an exchange-traded fund or bitcoin ETF. Bitcoin exchange-traded funds (ETFs) hit the market in January, and on the first day of their availability, they saw trading of almost $4 billion. 

Bitcoin Price History

Below is a summary of Bitcoin’s price history:

From 2009 to 2015

Bitcoin’s price was zero when it was first established in 2009. On October 26, 2010, its price surged from its sustained average of $0.10 to $0.20. 

From 2016 to 2020

Through 2016, prices increased gradually, reaching almost $900 by the last day of the year. The price of Bitcoin remained relatively stable throughout 2017 until it crossed $2,000 in mid-May, at which point it surged to finish at $19,188 on December 16.

From 2021 to 2023

By January 7, 2021, Bitcoin had crossed $40,000, breaking the 2020 valuation record in less than a month. Bitcoin’s price increased due to institutional interest, and on April 14, 2021, it peaked at $64,895.

In 2024

Following the fund approvals, the price of bitcoin increased rapidly; it again broke above $60,000 in the latter half of February and the beginning of March, peaking at $69,210 on March 6 and $70,184 on the 8th of March. Bitcoin broke all previous marks on March 14, hitting $73,805.27 before midday.

The Bottom Line!

The main cause of Bitcoin’s price swings is the expectation of wealth and an everising value among traders and investors. Investigate the top cryptocurrency exchanges and applications first if you’re considering investing in Bitcoin. There are many reasons to invest and many reasons to avoid depending on your risk level and estimated holding period. Many people and companies are betting very big for the long term and when any cryptocurrency, equity or commodity is reaching an all time high, that usually means it is going higher until it is not!