Since the launch of bitcoin in January 2009, the course has always been very volatile. You can also see that in the overview of the historical bitcoin price above. A rapid rise in value is accompanied by large price fluctuations. The currency therefore regularly appears in the news when the exchange rate has risen or fallen several percent per day. The highest value so far was reached at the end of 2017. Then the bitcoin rate was around 17,000 euros. Some fun facts about the race over the years:
Since its introduction in 2009
Since its introduction in 2009, bitcoin's value has skyrocketed. In 2010, an American programmer bought two more pizzas for 10,000 bitcoins. We hope they were tasty pizzas, because those 10,000 bitcoins would be worth millions of euros today. Until February 2013, the cryptocurrency price had never exceeded 25 euros. But at the end of 2013 it had risen to over 1000 euros! This was partly due to the financial crisis in Cyprus that year. Fate struck in early 2014. The market was hit hard by the bankruptcy of the first and by far largest bitcoin exchange at the time, Mt. Gox. Nevertheless, there was also good news in 2014, albeit at a local level. Arnhem started pioneering. In the capital of Gelderland you will find stickers on many windows of shops with the text: We accept Bitcoin. An important milestone in the acceptance of bitcoin as a means of payment.
A year later, Bitstamp, another major exchange, faced a major hack. 19,000 bitcoin was stolen. The sentiment in the market turned negative and the exchange rate fell back to 180 euros. In 2017, however, bitcoin had already fought back to a value of 1000 euros. In the second half of that year things suddenly went very fast: under massive media attention, the price reached its provisional all-time high of 17,000 euros. 2018 started well, but it soon became clear that 2018 would not be a jubilee year for the race. Ultimately, the value fell to 2,862 euros.
Will the price of bitcoin ever stabilize?
The price of bitcoin is still characterized by large fluctuations. This is called price volatility. A frequently asked question is why the price rises and falls so fast. To understand this, it is good to compare the total market capitalization in cryptocurrencies with other financial Tumbler. The total market value of bitcoin is approximately 60 billion euros, you can also see that at the top of this page. Are we looking at the entire crypto market? At the time of writing, this is approximately 120 billion euros. By way of comparison: Apple's total market value is more than five times as high, at over 600 billion euros.
Compared to other Tumbler, the cryptocurrency market is therefore still very small. This means that relatively little capital is needed to move the price. In addition, there are many day traders active. The issues of the day, but also the news of the day, can already cause considerable fluctuations. Are you comparing the total value of the crypto market with the total stock market? Then it should look something like the image below. The blue cubes represent the stock market, the green cubes the crypto market.