October 24, 2023
By Anjali Kochhar
Bitcoin the world’s most famous cryptocurrency was invented in 2008 and the transactions started in 2009. In 2009 price of one Bitcoin was $0.0009. It touched a maximum of $65000 in 2021 followed by a global crash in cryptocurrency.
From its humble beginnings in 2009, when a single Bitcoin was worth a fraction of a cent, to its astonishing peak in 2021, this article explores the remarkable rise and fall of Bitcoin’s value.
Beyond the price fluctuations, we delve into the factors, events, and trends that have shaped Bitcoin’s trajectory, while also peering into the crystal ball to consider the possibilities and challenges that lie ahead in the ever-evolving world of cryptocurrency.
Bitcoin’s Seasonal Strength in the Fourth Quarter
Looking at the broader crypto landscape, Bitcoin historically demonstrated strength in the fourth quarter. This strength is often attributed to positive catalysts such as the anticipation of the Bitcoin spot exchange-traded fund (ETF) and the upcoming Bitcoin halving scheduled for April, an event that generally happens every fourth year since the invention of Bitcoin in 2008.
A wall of institutional money is waiting to be deployed in BTC. These events typically bolster confidence and drive prices within the crypto market.
Bitcoin Halving and Its Effects
Presently the currency is trading at 50% of the all-time high, further 2024 is the year for Bitcoin halving, during this the BTC mining is reduced by 50%, (the payout will be reduced to 3.125 BTC from existing 6.25BTC per year).
This is a positive event for the price of Bitcoin. Further, as per the predictions, Bitcoin has a bright future and is expected to cross $25000 by 2024 and to $45000 by 2025. It might cross $100000 by 2030. However, crypto market is highly volatile and exact predictions about the global economic market are not possible.
Countries like the USA, EU, Canada, Australia, UK, and Japan have legalized the use of Bitcoin and other cryptocurrencies.
Bitcoin’s Hard Cap and the Principle of Supply and Demand
Satoshi Nakamoto, founder of Bitcoin has used Hard Cap in the coding for Bitcoin mining which has ensured that a maximum of 21 million Bitcoins can ever be mined. Presently, 19 million bitcoins have been mined and it is expected that by 2140 all 21 million bitcoins will be mined.
Satoshi has done this as per the basic principle of supply and demand. When the supply of bitcoin is limited and demand is more the cost of bitcoin is expected to rise.
The Influence of Banking and Economic Factors on Bitcoin
According to Marion Laboure, Analyst at Deutsche Bank Research, “I could potentially see Bitcoin to become the 21st-century digital gold. Let’s not forget that gold was also volatile historically. But it is important to keep in mind that Bitcoin is risky: it is too volatile to be a reliable store of value today. And I expect it to remain ultra-volatile in the foreseeable future.”
The banking crisis in the U.S.A. and the weakening of the dollar, cooling inflation have had a positive impact on Bitcoin prices and it will be prudent to say that due to these reasons Bitcoin prices have recovered from where it was in 2022.
In conclusion, the crypto world unfolds a series of intriguing phases that both captivate and concern stakeholders in the global financial landscape. The advent of cryptocurrencies has revolutionized traditional economies, while also raising significant regulatory and security challenges. The recent freezing of crypto accounts linked to HAMAS on the Binance platform exemplifies the growing importance of collaboration between crypto organizations and governments to safeguard global security.
Moreover, the global acceptance and legalization of cryptocurrencies in countries such as the USA, EU, Canada, Australia, UK, and Japan reflect a growing recognition of digital currencies as legitimate financial instruments. As the crypto world continues to evolve, it will undoubtedly present both challenges and opportunities, shaping the future of finance in ways that are yet to be fully understood.
About the author
Anjali Kochhar covers cryptocurrency stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.
