In 2008, an anonymous inventor named Satoshi Nakamoto brought the world an entirely new type of asset class: cryptocurrencies.
Nakamoto proposed a new type of currency, which he called Bitcoin.
Before Bitcoin, electronic currencies already existed. And Nakamoto didn’t invent cryptography or the networked blockchain data structure that supports Bitcoin. But Bitcoin was the first cryptographically secured blockchain currency. And that was enough to give Bitcoin the dominance in the crypto market that it has today.
Bitcoin represented a new world of possibilities and advantages over older currencies and financial systems. But it has also caused a lot of confusion. Bitcoin does not represent a stake in a company like stocks. It is not issued by a government like dollars or yuan. It is not backed by a physical asset such as gold or oil.
All this leads to questions. How much is Bitcoin worth? What determines the price of a single Bitcoin? How is the exchange rate between Euro and Bitcoin calculated? How is it that this cryptocurrency has any value at all?
If you ask yourself these questions, you’ve come to the right place. We’ve put together everything you need to better understand the intricacies of the Bitcoin price and the factors that affect it. Bitcoin price history
The price of Bitcoin (BTC) has been very volatile since the cryptocurrency started trading. The cryptocurrency market has proven to be far more volatile than the stock market, often experiencing fluctuations of 10% or more in a single day. Sometimes even much more. Compared to Bitcoin, stock prices change minimally and slowly.
When it was founded, Bitcoin was worth less than a penny. In fact, in May 2010, a hungry Bitcoin owner famously paid 10,000 BTC worth just a few cents for two pizzas in the first real Bitcoin transaction.
The BTC price level flirted with zero for a while, then finally broke the symbolic $1 mark in February 2011 and established a one-to-one BTC-to-USD price ratio. A few months later, Bitcoins were traded for more than 10 euros each.
In 2013, the Bitcoin value exceeded 100 euros for the first time. At the end of the year, the Bitcoin price shot towards 1,000 euros.
Any Bitcoin chart that shows the BTC exchange rate over time will show that the cryptocurrency didn’t get off the ground for three years before entering a bull market in 2017. At the end of the year, a single Bitcoin was worth 17,000 euros.
When the Bitcoin exchange rate rose by more than 1,900% in a single year, the world became aware. It became common to see a Bitcoin calculator on websites dedicated to tracking world currencies. The Bitcoin converter should tell investors and the public what the cryptocurrency is currently worth. The price ratio of Bitcoin to USD made headlines every time it rose or fell by a few percentage points.
Government agencies, economists, and journalists began to take Bitcoin seriously, though most of the financial establishment remained skeptical. Editorials appeared in business magazines whenever the Bitcoin exchange rate changed. But few established voices thought the BTC was a good investment idea.
The skepticism was confirmed when the price of Bitcoin suddenly fell by 50% in an epic crash after the 2017 high. Once again, the price cycle went through a long static period, with prices falling as low as $2,500 per bitcoin.
A further price increase and decline followed in 2020 and again in 2021. You can see this in the Bitcoin Chart on this page.
History shows that Bitcoin’s value has changed in repeated cycles. There is a period of little change, a dramatic increase, a correction that wipes out much of the sudden gain, and then a relatively rapid rise to establish a new stable price.
Sometimes these cycles last for years and sometimes they are completed in a few months.
What is clear is that although part of the established financial world has maintained its skepticism, Bitcoin has outperformed returns on the stock market and key commodities over the long term. The value of Bitcoin continues to rise today.
Over the 10 years, the Bitcoin price rose with an average annual return of 116.41%. Gold? 1.82%. NASDAQ? 17.77%. Numbers like these make Bitcoin interesting for any investor. Analysis of Bitcoin’s price history
The long-term Bitcoin price history can be analyzed using many of the techniques used by brokers and investors to analyze stock performance.
Technical analysis involves looking at a BTC chart to understand previous price movements. With Bitcoin, as with many other tradable assets, large price fluctuations are often accompanied by spikes in trading volume, as a large number of users buy or sell coins on exchanges.
Fundamental analysis, on the other hand, is based on tracking the impact of world events and economic conditions on the price of Bitcoin. For example, the Bitcoin price generally responds to government announcements to enact stricter or looser regulations for cryptocurrency trading.
Public statements from prominent investors seem to have a big impact on the Bitcoin exchange rate. Bitcoin’s record-breaking rise and fall in 2021 coincided with tweets from Tesla CEO and crypto enthusiast Elon Musk. Factors that affect the Bitcoin price
Many factors can affect the price of Bitcoin.
Bitcoin has a set total supply and is therefore resistant to the inflation that plagues fiat currencies. This suggests that Bitcoin can outperform traditional currencies in the long run.
The price of Bitcoin also sometimes moves with or in response to changes in the overall economy. For example, Bitcoin made impressive gains in 2020, while many economies were shut down and an unprecedented amount of fiat currency was printed in response to the COVID-19 pandemic.
Project developments and news are further price drivers.
The BTC value is also subject to so-called halving events. These planned adjustments, which will halve the number of bitcoins awarded to miners to process transactions, will take place every four years. Halving events correlated with temporary increases in the bitcoin price, although the increases could be explained by other factors.
Adoption by investors is another clear contribution to Bitcoin’s value. In 2020 and 2021, companies like MicroStrategy, Square, and Tesla made headlines by making large Bitcoin purchases. In fact, a significant portion of all bitcoins in the vaults are held by public and private companies and ETF-like trusts. In addition to lowering supply on the open market, institutional Bitcoin investments could create confidence in the cryptocurrency and encourage more retail investment. This would be another important driver for the Bitcoin price.
All of these factors affect Bitcoin’s Preis.Live value and market capitalization today
The Bitcoin price today varies from moment to moment as it is dictated by the transactions of buyers and sellers on exchanges. The Bitcoin rate is always expressed in dollars, euros or other fiat currencies, as currently the services of an exchange or Bitcoin broker are required to convert the cryptocurrency into issueable cash.
With the volatility of Bitcoin, the live BTC value can change by a large amount in a very short time. The market capitalization of Bitcoin is equal to the price of Bitcoin multiplied by the number of BTC in circulation. [livee-price-block] The maximum supply is BTC. Bitcoin Price FAQWhat is the highest Bitcoin price in EUR?
The price development of Bitcoin shows that BTC has reached a peak value of EUR. What is the lowest Bitcoin rate in EUR?
Kriptomat data confirms that EUR is the lowest recorded value of Bitcoin. How can I buy Bitcoin?
You don’t need to consult an expert to tell you how to buy Bitcoin. It is quick and easy to buy BTC at Kriptomat. You can buy Bitcoin immediately at the current BTC rate of EUR. The current prices are always displayed in the BTC chart. What is the current Bitcoin price in EUR?