Bitcoin has surged suddenly in 2024, by as much as 20% in just five days, approaching a value of $69,000, which would be its all-time high last reached in 2021.
Reasons for Bitcoin’s Value Increase
Approval of Bitcoin Exchange-Traded Funds (ETFs) by the SEC: The decision by the United States Securities and Exchange Commission to approve Bitcoin ETFs has led to billions of dollars flowing into the cryptocurrency. This has increased the legitimacy and accessibility of Bitcoin as an investment asset.
Bitcoin Halving: The upcoming “halving” of Bitcoin is another significant factor. This event occurs approximately every four years and reduces the rate at which new coins enter circulation. The halving creates scarcity in a currency that is already finite, theoretically raising its price. This intrinsic feature of Bitcoin has historically been associated with significant bullish periods.
Impact on Bitcoin Miners: The halving also affects Bitcoin miners, as it cuts the reward they receive for validating transactions and securing the network in half. This reduction may motivate miners to accumulate more Bitcoin instead of selling it, which can decrease selling pressure on the market and contribute to the price increase.
Investor Optimism: Despite uncertainty about the potential effects of the halving and other events, investors are showing a high degree of optimism. This is reflected in the trading activity on platforms like Coinbase, which experienced disruptions due to increased trading volume. Investor optimism may be driven by the perception of Bitcoin as a safe-haven asset and its potential for future growth.
Bitcoin’s Value from 2009 to 2023
The highest and lowest values in the year:
2009 – $0.0008 – $0.0003
2010 – $0.39 – $0.0008
2011 – $32 – $2.00
2012 – $12.42 – $2.00
2013 – $266 – $50
2014 – $1,242 – $314
2015 – $503 – $170
2016 – $998 – $369
2017 – $20,089 – $775
2018 – $15,249 – $3,122
2019 – $13,868 – $3,122
2020 – $29,500 – $3,850
2021 – $68,789 – $29,000
2022 – $47,000 – $16,500
2023 – $63,915 – $41,649