The Rise of Bitcoin Price: A Look at the Last Couple of Years
April 10, 2023 at 4:15:00 PM
Bitcoin, the first and most well-known cryptocurrency, has experienced a remarkable rise in price over the last couple of years. In this article, we'll explore the factors that have contributed to the rise in Bitcoin price and what it could mean for the future of the cryptocurrency market.
In 2017, Bitcoin experienced a historic bull run, with its price surging from around $1,000 in January to nearly $20,000 in December. This dramatic rise in price was fueled by a number of factors, including increased media attention, greater institutional interest, and growing awareness among the general public.
One of the key drivers of Bitcoin's rise in price was the growing acceptance of the cryptocurrency by mainstream institutions. In 2017, the Chicago Mercantile Exchange (CME) and the Chicago Board Options Exchange (CBOE) launched futures contracts for Bitcoin, providing a new way for institutional investors to gain exposure to the cryptocurrency market.
At the same time, many retail investors began to flock to Bitcoin, drawn in by the potential for high returns and the growing buzz around the cryptocurrency. This influx of new investors helped to drive up demand and push the price even higher.
However, the bull run of 2017 was not sustainable, and Bitcoin's price eventually crashed in early 2018, dropping from nearly $20,000 to around $3,000 over the course of the year. This sharp decline in price was due in part to the bursting of the cryptocurrency bubble and a wave of regulatory crackdowns in countries such as China and South Korea.
In the years since the 2017 bull run, Bitcoin's price has slowly but steadily climbed back up, reaching new all-time highs in 2021. This rise in price has been driven by a number of factors, including increased institutional adoption, greater mainstream acceptance, and growing interest in Bitcoin as a store of value.
In particular, the COVID-19 pandemic has accelerated the trend towards digital payments and increased the demand for alternative assets, including Bitcoin. Many investors see Bitcoin as a hedge against inflation and a way to diversify their portfolios in uncertain times.
Another factor driving the rise in Bitcoin price is the limited supply of the cryptocurrency. Bitcoin is designed to have a maximum supply of 21 million coins, with roughly 18.6 million already in circulation. As the supply of Bitcoin dwindles, many investors believe that the price will continue to rise, driven by the basic principles of supply and demand.