Get the weekly summary of crypto market analysis, news, and forecasts! This Week’s Summary The crypto market ends the week at a total market capitalization of $1,165 trillion. Bitcoin is up by over 2% after a rollercoaster of a week. Ethereum decreased by almost 1% over the past seven days. XRP gained more than 15% in value this week. Almost all altcoins are trading in the green, with very few exceptions. The DeFi sector decreased the total value of protocols…
Every Major Bitcoin Bull Run Explained
Bitcoin has had an impressive history in terms of bull runs. Ever since the coin first entered the market, there have been long-term believers in the project. These HODLers have experienced these ups and downs in stride. Each new all-time high symbolized to these users the growing impact of this revolutionary technology.
In January 2009, Bitcoin was only known to a select few in the cyberpunk and development communities. Today, it’s grown to become an international phenomenon. During these early days, Bitcoin first started to gain momentum in these circles. These early gains were fueled by basic developments such as the introduction of Bitcoin exchanges.
Compared to the prices of today’s market, these early bull runs may seem insignificant. However, they are what set the stage for today’s current pricing. They also helped temper the community to become what it is today.
Large Scale Adoption on the Horizon
One important factor to consider when reviewing these bull runs in the state of mind of the average Bitcoin investor. Since day one, there have been Bitcoin believers that felt that at any moment, the coin would burst into the market as a viable alternative to the current centralized system.
The power of hindsight makes it easy to see that these early investors were optimistic in their assumptions that the project would take flight immediately. Instead, the growth of Bitcoin has been a long and sometimes treacherous journey. However, like every good hero story, Bitcoin always comes out on top.
The Importance of Understanding Bitcoin’s Past
As an educated investor, you must take a moment to examine these past successes and their driving causes. While the market continues to develop, traders can always gain valuable insight by looking at the coin’s previous performances. This approach removes emotion from the equation and helps you to base your investment decision on facts. Here are the top Bitcoin bull runs to date.
In 2011, Bitcoin experienced its first major bull run. Bitcoin consisted of a very different group of users back then. These early adopters were way ahead of the curve. These currency pioneers helped to drive the price of Bitcoin from $0.30 up to $35.00 by the end of the year. This 11,000% increase helped to demonstrate Bitcoin’s endless potential to the masses.
Examining the market during this time reveals some of the driving factors behind this run. It was the first time that Bitcoin received heavy media coverage. The hype was capped off with articles about the crypto in Time and Forbes magazines. All of this hype had many HODLers believing that the coin was destined for mainstream adoption at any moment. However, that was not the case.
As quickly as Bitcoin had risen to stardom, it banished it from the light. The media swiftly changed its position globally’s first cryptocurrency from a technological marvel to a black-market coin. It wrote major pieces on the Silk Road and Bitcoin’s use within the dark web. These debates spilled over into questioning the overall economics of the coin. In some instances, lawmakers utilized the moment to lament decentralized currencies and the need for centralization in the financial sector.
Sadly, the turn in public opinion, fueled by the media, quickly erased the year’s gains. The world’s first crypto saw a decline in value of 90% following these negative campaigns. Bitcoin prices plummeted to $2.30. They would remain in this area for over a year. Despite the horrific losses, Bitcoin’s core community was unshaken. They saw the development as proof the coin had the potential to change the market forever.
After two years of a slow bear market, 2013 saw the coin make some strides. The year started with Bitcoin at around $13.00. The coin suddenly rallied and hit $259 in April briefly. The gains were short-lived, and within days of hitting the all-time high, the coin dropped back to $43. These gains resulted from a growing support network for the coin, including the launch of Mt.Gox, the world’s largest Bitcoin exchange.
In November of the same year, Bitcoin would shatter all previous records and surpass the important $1000 mark. The success of Mt.Gox helped to provide much-needed liquidity to the market. In total, the coin gained 10,250% to hit an all-time high of $1,242 per coin on the exchange.
These gains were partly fueled by large exchanges and a new eave of positive media attention. It was at this time that Bitcoin began to catch the eyes of traditional financial institutions. Although, it would still be many years before they would enter the market in force and drive Bitcoin to record highs.
The fall from this high was slow and arduous. The market remained in a bear until it bottomed out in January 2015 at $152. This decline equaled a loss of 87% compared to the coin’s all-time high. However, unlike the previous bears, Bitcoin’s network was now larger than ever, and investors who had weathered the previous bear markets were willing to HODL and see what the future held.
January 2017 saw the first sign of light emerge within the Bitcoin market in years. The digital currency appreciated by more than 3,000% to hit a new all-time high of $20,000 in December during this rally. Unlike previous bull runs, this one was accompanied by a surge in altcoin values as well. Much of the momentum in the market came from the introduction of these new coins and projects.
Another notable event that helped to bring more liquidity into the market was the standardization of the ERC-20 token standard. For the first time, companies had a cost-effective way to launch their tokens on the Ethereum network. The result of this maneuver was a huge influx in projects known as the 2017 ICO craze.
A two-year-long bear market followed the 2017 highs. Bitcoin’s price would slowly fall from its all-time high down to around $ 3,100 before bottoming out. This 84% loss had many in the market worried about the future of the coin. Of course, the HODL community had no fears as they understood that, unlike the previous runs, this time, Bitcoin saw some institutional interests.
2019 – 2020
The start of 2019 wasn’t anything major in terms of Bitcoin price movements. However, it did signal a change of momentum in the bear market. Bitcoin finished the year at $7,251.28. This digital currency continued to gain in popularity amongst major investment firms. This year also saw an influx in Bitcoin payment processors, remittance services, and other vital infrastructure. Notably, Bitcoin hit a new high of $29,111.52.
This year has already seen Bitcoin smash all previous records. The coin hit a new value of $58,000 by February. Since then, Bitcoin has continued its rise to fame. The coin hit a new all-time high of around $64,000 recently. Notably, market indicators demonstrated that this is nowhere near its maximum potential.
This new round of growth differs from the previous bull runs in many ways. Primarily, the institutional investors that HODLers had awaited for years have finally arrived. Recently, major firms, such as Microstrategy, have traded out their cash reserves for Bitcoin. These maneuvers have helped to build more confidence in the market.
Given the current state of the market, Bitcoin looks to continue its record drive for the foreseeable future. Unlike bull runs in the past, these HODLers are tempered steel. They understand the mission and what makes Bitcoin vital to humanity. These followers have diamond hands with no intention of selling their precious Satoshis. Also, the public has now recognized the store-of-value aspects of this digital currency. As such, more investors are turning to Bitcoin instead of gold.
Conflict and Currency
If history is any clue to what the future holds, Bitcoin is set to continue its climb to success. In the past, it has taken major global conflict to alter the global monetary system. For example, it was WWI that took Europe off the gold standard. Shortly after, WWII put the world on the US dollar standard. Then, it was Vietnam that eliminated gold-backing for these funds in the ‘70s. It’s not unreasonable to expect the next global conflict could see Bitcoin become the new international standard.
Bitcoin – Now You Know
Now that you have a better understanding of the history of Bitcoin’s market activity, you’re ready to make an informed investment decision. This digital coin has helped to reshape the global financial markets and how people think of currency. Moving forward, Bitcoin could play a vital role in the separation of state and currency. At the very least, it will provide relief from the rising number of failing fiat currencies and bad monetary policy in the market today.