- Bitcoin is currently trading at $65,447.01, reflecting a 1.63% increase for the day.
- The cryptocurrency’s price has surged 147% year over year, reaching an all-time high of $73,750.07 on March 14, 2024.
As of 8 a.m. ET, the price of Bitcoin (BTC) is $65,447.01, marking a 1.63% increase for the day. This comes after Bitcoin hit its highest intraday price in the past year at $73,750.07 on March 14, 2024. Despite this high, Bitcoin’s journey has seen significant lows, such as $26,111.46 on September 27, 2023. The original cryptocurrency is up by an impressive 147% year over year.
Bitcoin’s Historical Journey
Bitcoin, launched in January 2009, has revolutionized global financial markets. It started at negligible values, with the first recorded transaction pricing 5,050 BTC at just $5.02, or $0.00099 per BTC. Since then, Bitcoin has grown to a global market capitalization of $1.29 trillion and become a popular alternative to government-backed fiat currencies, which often lose value over time due to inflation.
The Unique Nature of Bitcoin
Bitcoin operates on a blockchain network, enabling financial transactions without banks or government intermediaries. This decentralized system is maintained by miners, who validate transactions by solving complex mathematical problems. For their efforts, miners are rewarded with newly created BTC. Unlike traditional assets, Bitcoin’s price is determined solely by supply and demand, as it doesn’t represent ownership of a company or pay dividends.
What Determines Bitcoin’s Price?
Bitcoin’s total supply is capped at 21 million BTC, making its price highly sensitive to demand. Investor sentiment plays a crucial role, with prices fluctuating based on market interest. The concept of Bitcoin halving, which occurs after every 210,000 blocks, reduces the reward miners receive for adding new blocks, effectively limiting the BTC supply and supporting its price over time.
The Evolution of Bitcoin Prices
Bitcoin’s price milestones reflect its growing popularity and market acceptance. After surpassing the $1 mark in 2011, BTC prices climbed to $1,000 in late 2013, and by November 2017, Bitcoin hit $10,000, peaking at over $20,000 a month later. However, the enthusiasm waned in 2018, with prices dropping below $4,000.
The COVID-19 pandemic in 2020 saw a renewed interest in Bitcoin, partly due to government stimulus checks and limited entertainment options. Yet, rising interest rates and overleveraged crypto entities caused a decline in 2022. Bitcoin’s resurgence began in 2023, culminating in an all-time high of $73,750.07 on March 14, 2024.
How to Buy Bitcoin
Investors can purchase Bitcoin on popular cryptocurrency exchanges like Binance, Coinbase, and Kraken. Bitcoin must be stored in a digital wallet, which can be a hardware wallet resembling a USB stick or a software wallet app on a device. Hot wallets are connected to the internet, offering convenience but higher risk, while cold wallets are offline, providing greater security.
Investors can also gain exposure to Bitcoin through Bitcoin funds. The SEC’s approval of several Bitcoin spot ETFs in January 2024 allowed these funds, which hold the cryptocurrency itself, to trade on major U.S. exchanges. This approval signifies institutional validation of Bitcoin, moving it away from its initial speculative and volatile image.
