The Increase In The Price Of Bitcoin

The first Bitcoin move was made in 2010 when the coin traded at $0.08. But, there was constant volatility in the price due to different factors. Some of the essential elements that caused the volatility in the price of Bitcoin were the presence of an unregulated market and regular rumors of Bitcoin fraud. In 2011, the cost of Bitcoin was very volatile. The price jumped 32 dollars, and then the price dropped to 2 dollars in a day.

Over time, digital currency gained popularity among technology enthusiasts and many investors. From 2012 to 2017, the price increased from 4 dollars to 1,200 dollars. However, even after the considerable increase in the price of Bitcoin, the Bitcoin market was quite volatile, and there were many security drawbacks associated with the digital currency.

In 2017, Bitcoin exceeded all expectations, and the price rose to an all-time high of $20,000. It then dropped to $7,000 just after a month. There were phases of price recovery in 2018 and 2019 due to people’s awareness. Many institutional investors were also made aware of the existence of digital currency.

We all know how the Covid-19 pandemic affected the world economy. But regardless of the pandemic, Bitcoin continued to rise. There was an increase of more than 200% in the price of Bitcoin. The colossal price rise of Bitcoin was due to the trend of institutional investors towards Bitcoin. In addition to this, due to the fall of other financial markets, people were more involved in investing in Bitcoin. Increased use of digital currency by institutional investors and corporations was an essential factor leading to price growth in 2020.

The Current Market Value Of Bitcoin

As a beginning investor, it is essential to know the current market value of Bitcoin. In 2021, Bitcoin was valued at $29,048 due to increased demand. But, the Bitcoins market was still volatile. Elon Musk made a statement on Twitter and further increased the value of each Bitcoin. Next, the founder of Tesla announced that they bought bitcoins for 1.5 billion dollars. This announcement led to a rise in the price of Bitcoin. As of April 2021, Bitcoin was valued at $63,729.

But, the cryptocurrency started falling in mid-May due to China’s crackdown on Bitcoin mining activities. Elon Musk also said that Bitcoin mining harms the environment in another case. Therefore, it led to an immediate drop in the value of Bitcoin, and it reached a value of $30,895.42. So, in a real sense, Bitcoin has been the most volatile currency in the history of trading.

Most investors who want to make a long-term investment in Bitcoin want to know what Bitcoin will be worth in 2025. Without a doubt, Bitcoin has lost more than half of its value. But, even so, this coin has bright prospects. Many institutional investors are adopting and using Bitcoin.

We are all aware that the supply of bitcoins is limited to 21 million. In addition to this, almost 18.5 million bitcoins have already been mined in a decade. Therefore, checking the current situation clarifies that the demand for bitcoins will increase, but the supply will decrease. Therefore, there is a certainty that the price of Bitcoin will grow exponentially by 2025.

Expert Predictions

Different experts and investors have various claims and opinions when it comes to the price of Bitcoin. According to a report, a panel of cryptocurrency experts predicted that the minimum cost of Bitcoin will be $318,417 by 2025. But, the price may rise to $4,287,591 by 2030. This Bitcoin price prediction may be accurate due to the growing use of bitcoins by industry experts and institutional investors. Furthermore, the upcoming Bitcoin halving in 2024 will also play a pivotal role in driving up the price of Bitcoin.

Also Read: What Is Market Research And How To Apply It In 7 Steps?

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