Since its inception, the cryptocurrency has experienced a number of ups and downs. Learn more about Bitcoin’s volatility and some of the factors that influence its price.
History of Bitcoin Prices
Bitcoin’s price fluctuates between investor enthusiasm and frustration with its promise. After the 2008 financial meltdown, Satoshi Nakamoto, the secretive Bitcoin creator(s), conceived it as a daily transaction medium and a mechanism to sidestep established banking infrastructure. Since then, cryptocurrency has grown in popularity as a means of exchange, attracting traders who wager on price fluctuations. It has also evolved into a new investment type, serving as a mechanism to hold money and hedge against inflation. Bitcoin also has investments tied to its price. Though this new story may hold more weight, previous price variations were mostly caused by regular investors and traders wagering on an ever-increasing price with little regard for rationale or facts.
However, Bitcoin’s price has recently shifted. As the cryptocurrency markets mature, institutional investors are beginning to enter, and regulatory authorities are developing rules expressly for them. Despite the fact that Bitcoin’s price fluctuates, it is now considered a component of the mainstream economy rather than a tool for speculators looking for quick profits.