Bitcoin
Price
BTC
Bitcoin Fundamental Analysis
What Is Bitcoin?
In 2008, the global financial crisis erupted, leading to bank closures and currency devaluation. Behind the disappearance of a massive financial bubble, an increasing number of people began to doubt the monopoly of banks and governments over the issuance and control of currency within the traditional financial system. When both banks and governments face 'credit bankruptcy,' what should people do?
In this era, an anonymous figure named Satoshi Nakamoto released a white paper titled "Bitcoin: A Peer-to-Peer Electronic Cash System," introducing the concept and technical principles of Bitcoin—a decentralized, anonymous, and global digital currency.
Bitcoin (abbreviated as BTC) utilizes blockchain technology and a decentralized approach, removing the dependence on central authorities for currency issuance and control. Instead, it is maintained collectively by nodes across the entire network, allowing people worldwide to genuinely and securely manage their assets with confidence and convenience.
Decentralization and Anonymity: In the traditional financial system, banks and governments hold a monopoly over the issuance and control of currency. Transactions rely on third-party intermediaries for verification and recording, potentially leading to currency over-issuance, inflation, and financial crises, posing trust and security risks. Bitcoin, through blockchain technology, achieves decentralized transaction verification and recording, eliminating reliance on central authorities. This enhances transaction security and credibility by involving nodes across the entire network.
Financial Inclusivity: Many people in various regions lack access to traditional financial services either due to the absence of bank accounts or an inability to meet the requirements of traditional financial institutions. The creators of Bitcoin aim to provide a convenient, secure, and accessible payment and storage method for these individuals through digital currency.
Despite Satoshi Nakamoto's unknown identity, the true motivations and intentions of the founder remaining a mystery, the emergence of Bitcoin coincidentally fulfilled the idea of the sacred and inviolable nature of private property. Bitcoin has become the progenitor of the world's most popular digital currencies.
In this era, an anonymous figure named Satoshi Nakamoto released a white paper titled "Bitcoin: A Peer-to-Peer Electronic Cash System," introducing the concept and technical principles of Bitcoin—a decentralized, anonymous, and global digital currency.
Bitcoin (abbreviated as BTC) utilizes blockchain technology and a decentralized approach, removing the dependence on central authorities for currency issuance and control. Instead, it is maintained collectively by nodes across the entire network, allowing people worldwide to genuinely and securely manage their assets with confidence and convenience.
Decentralization and Anonymity: In the traditional financial system, banks and governments hold a monopoly over the issuance and control of currency. Transactions rely on third-party intermediaries for verification and recording, potentially leading to currency over-issuance, inflation, and financial crises, posing trust and security risks. Bitcoin, through blockchain technology, achieves decentralized transaction verification and recording, eliminating reliance on central authorities. This enhances transaction security and credibility by involving nodes across the entire network.
Financial Inclusivity: Many people in various regions lack access to traditional financial services either due to the absence of bank accounts or an inability to meet the requirements of traditional financial institutions. The creators of Bitcoin aim to provide a convenient, secure, and accessible payment and storage method for these individuals through digital currency.
Despite Satoshi Nakamoto's unknown identity, the true motivations and intentions of the founder remaining a mystery, the emergence of Bitcoin coincidentally fulfilled the idea of the sacred and inviolable nature of private property. Bitcoin has become the progenitor of the world's most popular digital currencies.
Bitcoin Milestones Timeline
Bitcoin, since its inception 17 years ago, has a total supply of 21 million. Currently, BTC boasts millions of users, and its market capitalization has reached $8.6 trillion (as of January 2024).
2023
In 2023, the cryptocurrency industry experienced a resurgence. New policies and technological upgrades marked a turning point, with Bitcoin prices surpassing $44,000, signaling the beginning of a bull market.
December: Bitcoin experienced a rapid 6.1% surge to $42,000.
November: ChatGPT was launched, sparking a new wave of technological enthusiasm, with funds flowing back into the market and heightened investor sentiment.
October: BlackRock applied for a Bitcoin ETF, propelling Bitcoin to break through $28,000.
June: SEC sued Binance, leading to a minor decline in Bitcoin.
April: Hong Kong hosted the Web3 Carnival, embracing the Web3 and crypto industry.
March: Two major US banks faced severe runs, resulting in a stock price plunge.
2022
2022 was a challenging year for Bitcoin and the entire crypto industry, marked by impactful events.
November: FTX experienced a comprehensive collapse. On November 11th, FTX filed for bankruptcy, and Bitcoin prices continued to fall below $16,000.
October: Bitcoin volatility hit a low, with annualized volatility reaching 27.06% on October 25th, the lowest since July 2020.
August: Ethereum futures trading volume surpassed Bitcoin futures for the first time.
June: Crypto lending platform Celsius halted withdrawals. Due to the use of on-chain leverage and stETH derivatives, a vicious cycle ensued, causing Bitcoin prices to drop from $27,000 to around $19,000.
May: Leading stablecoin UST went through two decouplings, eventually spiraling into a death spiral. Both LUNA and UST collapsed, leading to a Bitcoin price decline.
2021
The fourth halving cycle began from 2021 to 2024. The spread of the novel coronavirus in 2021 accelerated the development of blockchain as many worldwide couldn't work normally due to the pandemic.
June: El Salvador declared itself the first country to adopt Bitcoin as legal tender.
April: Bitcoin prices reached an all-time high of $64,829.14.
February: Bitcoin market capitalization surpassed $1 trillion.
January: Bitcoin prices surpassed $40,000 for the first time.
2020
Bitcoin experienced its third mining reward halving.
December: Bitcoin prices reached a historic high, reaching $29,000.
March: Bitcoin prices sharply declined, falling below $4,000.
2019
Many forward-thinking institutions joined the cryptocurrency market.
November: Due to political instability, economic uncertainty, and a significant devaluation of the local currency in Argentina, people paid a high price to acquire Bitcoin as a hedge.
June: Facebook created the virtual currency Libra, attempting to compete with Bitcoin. Libra's promotion accelerated the adoption of cryptocurrencies, and Bitcoin prices rose to around $13,000.
April: Tensions rose in Venezuela, leading to the collapse of the fiat currency. This prompted Venezuelan citizens to use cryptocurrencies like Bitcoin as a means of exchange.
2018
December: Bitcoin prices continued to decline, reaching approximately $3,200.
November: The hash rate battle between Bitcoin Cash (BCH) and Bitcoin SV (BSV) during the hard fork.
January: Bitcoin prices rapidly fell to around $6,000.
2017
From 2017 to 2020, the third halving cycle began.
December: CBOE (Chicago Board Options Exchange) listed the world's first Bitcoin futures trading as XBT. Bitcoin prices reached an all-time high of $19,783.06.
September: China classified ICOs as illegal financial activities, temporarily halting their trading. After a 50% price drop, Bitcoin prices resumed a sharp rise.
August: Bitcoin underwent a "hard fork," with many investors turning to the rapidly rising Bitcoin Cash transactions. However, Bitcoin prices continued to rebound, experiencing a straight-line increase in September.
March: Bitcoin prices surpassed $1,000 for the first time.
2016
Bitcoin witnessed its second mining reward halving.
July: The UK's Brexit, the US presidential election, and a surge in Asian investors led to a continuous rise in prices. By December 2016, Bitcoin had surpassed $1,000.
2015
During the Greek debt crisis, people turned to Bitcoin as a hedge, resulting in a sustained increase in Bitcoin prices.
2014
December: Bitcoin prices continued to decline, reaching approximately $200.
February: The world's largest Bitcoin platform, Mt. Gox, declared bankruptcy, causing a sharp drop in Bitcoin prices.
2013
From 2013 to 2016, the second halving cycle began.
November: Bitcoin prices increased fivefold, surpassing gold. Bitcoin ranked 96th in Google's 2013 list of hottest search terms.
China prohibited banks and payment institutions from participating in Bitcoin transactions.
US government officials chose to hold hearings as Bitcoin reached a historic high of $900.
March: The global issuance value of Bitcoin exceeded $1 billion. Several European countries implemented favorable policies, leading to a surge in Bitcoin prices.
January: Amid the Cyprus bank debt crisis, citizens turned to cryptocurrencies, causing the price of a single Bitcoin to spike to $265.
2012
Bitcoin experienced its first mining reward halving.
2011
February: Bitcoin's market value reached $100 million.
2010
July: Bitcoin prices rose from a few cents to nearly $0.08.
May: A US programmer exchanged 10,000 Bitcoins for two pizzas, with a market value of $30. Since then, May 21st is celebrated as Pizza Day.
2009
From 2009 to 2012, the first halving cycle began (Bitcoin's block rewards halved every four years).
January: Satoshi Nakamoto announced the launch of Bitcoin to the world and mined 50 Bitcoins. The first Bitcoin transaction occurred.
2008
October: Satoshi Nakamoto released the "Bitcoin Whitepaper."
2024 Major Events for BTC
Significant events in the industry and financial sector have a direct impact on the price of Bitcoin. In 2024, there are two upcoming major events that we eagerly anticipate:
1. Bitcoin Spot ETF
What is Bitcoin Spot ETF?
A Bitcoin Spot ETF (Exchange-Traded Fund) refers to an investment fund that tracks the price of Bitcoin directly by holding the physical cryptocurrency. It is distinct from futures-based Bitcoin ETFs, which derive their value from Bitcoin futures contracts. In the case of a spot ETF, the fund actually owns and holds the underlying Bitcoin, providing investors with direct exposure to cryptocurrency.
Why Spot Bitcoin ETFs Are So Important?
The approval and launch of a Bitcoin Spot ETF are considered significant for several reasons:
1. Mainstream Adoption: A spot ETF could attract a broader range of investors, including institutional and retail investors, who may prefer a more traditional investment vehicle. It brings Bitcoin into the realm of mainstream financial markets.
2. Simpler Investment Approach: Unlike investing directly in Bitcoin, where individuals need to manage private keys and security concerns, a Bitcoin Spot ETF allows investors to gain exposure to cryptocurrency without dealing with the technical complexities associated with holding and securing digital assets.
3. Increased Liquidity: ETFs are traded on stock exchanges, providing liquidity and ease of buying or selling shares during market hours. This increased liquidity can contribute to more stable and efficient pricing for Bitcoin.
4. Regulatory Oversight: ETFs are subject to regulatory scrutiny, and their approval often involves satisfying regulatory requirements. The approval of a Bitcoin Spot ETF by regulatory authorities could signal a level of acceptance and regulatory clarity for the broader cryptocurrency market.
5. Market Maturation: The launch of a Bitcoin Spot ETF is seen as a sign of the maturation of the cryptocurrency market. It reflects a shift toward more sophisticated and regulated investment products, attracting a wider range of investors.
6. Price Impact: The introduction of a spot ETF is anticipated to have an impact on the price of Bitcoin. Increased demand from institutional investors and easier access for retail investors could potentially drive up the price.
However, it's important to note that regulatory approval is a key hurdle. Regulatory agencies, such as the U.S. Securities and Exchange Commission (SEC), carefully evaluate ETF proposals to ensure investor protection and market integrity. Delays or denials in approval can influence the potential impact on the market.
Investors should conduct thorough research and consider the risks associated with any investment, including the potential for price volatility and regulatory uncertainties, before participating in a Bitcoin Spot ETF or any cryptocurrency-related investment.
2. Bitcoin Halving
What is Bitcoin Halving?
Expected on April 26, 2024, Bitcoin will experience its fourth mining reward halving. Bitcoin Halving refers to the event where the block reward for Bitcoin mining is reduced by half, marking a significant reduction in the reward for validating and adding new transactions to the blockchain. According to the Bitcoin protocol, this halving occurs approximately every four years. Initially set at 50 bitcoins per block, the reward halved to 25 bitcoins in 2012, then to 12.5 bitcoins in 2016, and further reduced to 6.25 bitcoins in 2020.
Impact of Bitcoin Halving:
The Bitcoin Halving has complex effects on price dynamics. As mining costs increase due to the halving, and mining rewards decrease, unprofitable mining operations may exit the market, reducing the overall Bitcoin supply. This exodus could potentially lead to a temporary price decline on the halving day. However, over a longer period, if demand for Bitcoin remains constant or increases, the altered supply-demand dynamics could contribute to a rise in Bitcoin's price.
Factors Influencing Price Movements:
While the Bitcoin Halving is a significant factor, other unpredictable elements such as market sentiment, investor expectations, global economic conditions, and unforeseen events also influence Bitcoin's price. Notably, predictions from industry pioneers vary; for instance, Standard Chartered Bank anticipates Bitcoin to surge to $500,000 in the next bull market.
Investment Opportunities and Risks:
Bitcoin Halving introduces substantial volatility and investment opportunities. The pronounced price fluctuations create both opportunities and risks for investors. It's crucial for traders to maintain a rational investment mindset and be aware of the potential for significant market swings. Strategic analysis, understanding market sentiment, and staying informed about broader economic factors are essential for investors navigating the opportunities presented by Bitcoin Halving.
In summary, Bitcoin Halving is a critical event shaping the cryptocurrency landscape. While it introduces potential opportunities for investors, it's vital to approach investments with a well-informed and balanced perspective, considering both the potential rewards and inherent risks associated with the dynamic nature of the cryptocurrency market.
Number of Halvings | Time to Halving | Time to Peak After Halving | Highest Price After Halving | Percentage Increase from Previous Peak |
First Halving | 28/11/2012 | 04/12/2013 | 1133 | / |
Second Halving | 10/07/2016 | 16/12/2017 | 19497 | 1621% |
Third Halving | 22/05/2020 | 08/12/2021 | 67567 | 247% |
Fourth Halving | 26/04/2024 | What are your predictions? | ||
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Release Time：
2010-07-13
