Happy 14th Anniversary of Bitcoin! History, price trends and more

Over the ensuing 14 and three-and-a-half years, bitcoin has become one of the most important financial instruments, clearly demonstrating that a currency not controlled by a central bank is capable of challenging the established monetary order.

With that in mind, what significant events have occurred over the past 14 years and how has the price of bitcoin navigated its ups and downs? What can we expect from bitcoin in the future? Read on to find the answer to these questions and more.

On their 14th anniversary, Bitcoin’s message is stronger than ever.

The first bitcoin transaction was sent by Satoshi Nakamoto to American cryptographer Hal Finney along with a message criticizing the actions of governments and banks in the wake of the 2008 financial crisis.

In light of the growing macroeconomic turmoil and the inability of central banks to address inflationary concerns – largely due to an unprecedented growth in the money supply during the coronavirus pandemic – the coin supply of artificially limited and decentralized bitcoin networks can be seen as the primary alternative to traditional, inherently inflationary fiat currencies.

Bitcoin’s 10 most important milestones

Bitcoin has passed many milestones and faced several significant obstacles in its nearly ten and a half year history. Here are 10 events that we believe have had the biggest impact on bitcoin so far:

  • November 28, 2012: First bitcoin halving
  • February 28, 2014: Mt. Gox, the largest bitcoin exchange at the time, filed for bankruptcy.
  • July 9, 2016: Second bitcoin halving
  • August 1, 2017: Bitcoin Cash Hard Fork
  • May 11, 2020: Third bitcoin halving
  • February 8, 2021: Tesla invests in Bitcoin
  • February 20, 2021: Bitcoin reaches a market cap of $1 trillion for the first time.
  • September 7, 2021: El Salvador makes bitcoin legal tender.
  • November 14, 2021: Taproot update is enabled.
  • November 11, 2022: Major cryptocurrency exchange FTX files for bankruptcy.

Between its third halving on one hand and FTX’s bankruptcy filing on the other, bitcoin has seen remarkable market activity over the past few years.

What can we expect from bitcoin in the future? With bitcoin’s fourth halving approaching and given favorable historical price data, our bitcoin price prediction algorithm predicts that the bitcoin price will rise over 150% and surpass $40,000 l next year. We will examine this in more detail in the next section.

Bitcoin has never closed in the red zone two years in a row: Will the trend continue?

The Bitcoin price has fallen by more than -60% in the past 12 months. However, there is a strong bullish precedent in play which could portend a major trend reversal in the coming months.

First, bitcoin has never closed negative two years in a row. It is true that we have a relatively short set of historical price data to work with. But roughly speaking, bitcoin worked on 3 years of growth followed by a year of market retracement. periods, at least for now.

bitcoin price Year-on-year % change
3 January 2011 – year 2 $0.295 no data available
3 January 2012 – 3rd year $4.88 +1.544%
3 January 2013 – 4th year $13.40 +175%
3 January 2014 – 5th year $818 +6.004%
3 January 2015 – Year 6 $284 -65%
3 January 2016 – Year 7 $429 +51%
3 January 2017 – Year 8 $1,044 +143%
3 January 2018 – Year 9 $15,079 +1.344%
3 January 2019 – 10th year $3,844 -74%
3 January 2020 – Year 11 $7,317 +90%
3 January 2021 – Year 12 $32,878 +349%
3 January 2022 – 13 years $46,424 +41%
3 January 2023 – 14 years $16,729 -64%

Bitcoin has never closed in the red zone for 2 consecutive years.

The main reason for this cycle of “3 against 1” lies in the fact that the halving of bitcoin is planned every 4 years. When a halving is triggered, bitcoin miners receive only half of the reward they received before the halving. Bitcoin’s next and fourth halvings – expected between February 2024 and June 2024 – will see the reward rate for miners drop from 6.25 BTC to 3.125 BTC.

Typically, bitcoin investors are excited about a halving because they see it as a positive influence on the price of bitcoin. In fact, previous halvings have always been accompanied by growth in the price of inventory, as shown in the bitcoin halving chart below.

Bitcoin halvings have been one of the biggest driving forces behind the BTC price.

There is no doubt that bitcoin, along with most crypto and traditional assets, performed quite poorly last year. With further interest rate hikes planned for 2023, financial markets and cryptoassets may continue to decline, at least in the coming months.

However, there is a clear chance of recovery in the charts, underlined by the cyclical nature of the bitcoin price and its correlation to periodic bitcoin splits. This has made bitcoin one of the most popular long-term crypto investments.

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