How bitcoin price history can help your investment decisions
Bitcoin price history points the way to the future in many instances, and you can learn from its fundamentals.
Bitcoin is heavily traded around the globe and it accounts for more than 52 percent of the cryptocurrency market transactions. For crypto investors, bitcoin price history provides a window of insight when making a buy or sell decision.
The importance of market trends cannot be overlooked in the financial world. In making an investment, why past records might not show an accurate future performance, some clues can be gleaned.
Let us look at some noticeable trend with bitcoin price history.
Bitcoin Price Trend
One thing you should note about the price of Bitcoin is that it’s up today, and down tomorrow. The prices of Bitcoin, as well as other cryptocurrencies, fluctuate regularly, and this makes it quite difficult to know their sure worth. This is what many smart investors benefit from – buying at a lower price, and then you sell it for a much higher price. This kind of investing is short-term and is not as profitable as a long-term investment.
For instance, before 2013, Bitcoin was valued at a lower price of less than $1. If an investor bought and held Bitcoin for long-term maybe up to 2017 when it reached $20,000, then he would have reaped more significant benefits. Let’s look at some trends of Bitcoin prices;
Bitcoin prices can appreciate more than you’d possibly think
In 2013, many would have assumed that Bitcoin had reached its optimal level. However, we can ascertain for sure that it wasn’t even close to its highest level. In 2013, Bitcoin value appreciated from less than $0.01 up to $100 which as at that time was extremely impressive. To many that thought that Bitcoin was at its end, failed to invest and were surprised by the meteoric rise in Bitcoin in 2017 by reaching $20,000.
To investors who saw the further positive momentum in the value of Bitcoin are now millionaires if not billionaires. It may have taken Bitcoin about five years to present another impressive boost, but when it did in 2017, the whole world noticed it. It’s clear that cryptocurrencies especially Bitcoin have experienced its downtimes, but it still proves its worth by getting back to its feet. Currently, the value of Bitcoin has dropped averaging to approximately $6300 but who knows, it can rise again in 5 years’ time.
Many investors and experts are currently advising against investing in Bitcoin claiming that it has reached its high-end. Other experts claim Bitcoin worth is high and can go up to $500,000. Given the 2013 occurrence maybe there is still a far much better price for Bitcoin. Only time will tell!
Big gains require big losses
Investors who invested in Bitcoin by 2013 can ascertain for sure that they had to undergo significant gut-wrenching corrections. However, we’d say that patient and perseverance pay a great deal. For instance, in 2013, Bitcoin appreciated to $1000. The same Bitcoin was trading at below $200 in 2015. In fact, in 2013, the Bitcoin prices were extremely volatile – there were extreme gains as well as losses.
Later in 2013, the same Bitcoin appreciated to $3,000 followed by drop towards $2,000. Still, there was another increase nearly reaching $5,000 and den declining to about $3,000. These ups and downs are common in most successful long-term investments. And sometimes to reach the high-end, you must experience significant losses. In though Bitcoin is in its $6300, there still could be a recovery for it. In 2013, Bitcoin for the first time reached $1,000 followed by a crash of over 80%.
After five years, the same Bitcoin recovered. Even though Bitcoin has declined from its 2017 all-time-high, its current price is approximately 500% from its peak in 2013.
2017 bitcoin price chart by Business Insider showing the December price surge.
It takes time to grow
We have experienced massive rises in the value of Bitcoin over the last few years mainly in 2017. But let’s not forget where the same Bitcoin has come from. In July 2010, Bitcoin was trading at 6 cents. From there, it took Bitcoin about one year to reach $1, about three years to reach three figures, and about seven years to hit five figures.
For one, who knows, Bitcoin maybe even have the potential to reach six figures after a certain period of time, perhaps within five to ten years. Additionally, given that the Bitcoin platform keeps on adopting new and innovative technology to solve some of its challenges means that it is only becoming better. And it might take Bitcoin another five years to show another surprising outcome.
In reality, no one can predict the future of Bitcoin or any other cryptocurrency with pin-point accuracy. No one can certainly say why Bitcoin keeps on rising or falling that quickly. Therefore, when determining the worth of the Bitcoin, is essential to consider other factors apart from its price trends. These factors may include new partnership, regulations, new technologies, future objectives, and much more.