Key Takeaways
- Since its introduction, Bitcoin has had a choppy and volatile trading history.
- Bitcoin was designed to be used as currency in daily transactions.
- While Bitcoin is a cryptocurrency, investors have also used it to store value and hedge against inflation and market uncertainty.
- Bitcoin's price is a product of supply, demand, and market sentiment.
- Traders and investors can buy and sell Bitcoin through popular crypto exchanges.
Among all asset classes, Bitcoin has had one of the more volatile trading histories. The first significant price increase happened in October 2010, when a single Bitcoin's value began to move past its long flat price of less than $0.10.1
- Bitcoin, which can be bought and sold on popular crypto exchanges, has experienced several massive rallies and spectacular crashes since it first became available. This article offers insight into Bitcoin's volatile history and some reasons why its price acts the way it does.
Bitcoin's Price History
The price changes for Bitcoin generally reflect investor enthusiasm, as well as the demand and supply dynamics in the market. Satoshi Nakamoto, the anonymous Bitcoin inventor(s), designed it for use in daily transactions, but it has become far more than a payment method.
It attracted traders who began to bet on its price changes. Investors turned to Bitcoin as a way to store value, generate wealth, and hedge against inflation, and institutions worked to create Bitcoin investment instruments.
Bitcoin's price fluctuations are primarily driven by traders and investors who buy and sell aggressively in hopes of catching the next big move. If you're thinking of investing in Bitcoin, be sure to select a reliable cryptocurrency exchange first.
- Here's a quick rundown of Bitcoin's price history:
2009 to 2015
Bitcoin's value was $0 when it was introduced in 2009. The price jumped from its long-held level of $0.10 to $0.15 on Oct. 26, 2010, and reached almost $0.30 before the end of the year. In 2011, it passed $1 and hit a peak of $30.05 on June 9, 2011. A sharp recession in cryptocurrency markets followed, and Bitcoin's price dropped, closing the year at about $4.1
Although Bitcoin's value increased by a few dollars, 2012 remained largely uneventful. But it saw strong gains in 2013. Bitcoin started trading at $13, crossed $100 by April, and $200 by October.1
The remainder of the year witnessed historic gains for Bitcoin. It crossed $1,000 in December and closed the year at about $760.1
2016 to 2020
Prices slowly climbed through 2016 to over $900 by the end of the year. In 2017, Bitcoin hovered around $1,000 until it broke over $2,000 in mid-May and then skyrocketed to $19,118 on Dec. 18, 2017.1
Mainstream investors, governments, economists, and scientists took notice, and other entities began developing cryptocurrencies to compete with Bitcoin.
Bitcoin's price moved sideways in 2018 and 2019, with small bursts of activity. For example, there was a resurgence in price and trading volume in July 2019, with the price hitting $12,000. However, it fell to a closing price of $7,294 by the end of December.1
In 2020, the economy shut down due to the COVID-19 pandemic. Bitcoin's price burst into action once again. The cryptocurrency opened the year at $7,768.1 The pandemic shutdown and subsequent government policies fed investors' fears about the global economy and accelerated Bitcoin's rise.
At the close on Nov. 23, Bitcoin was trading for $18,383. Its price closed at $27,081 on Dec. 28, 2020, increasing 248.62% from the start of that year.1
2021 to 2023
Bitcoin took less than a month in 2021 to break its 2020 price record, surpassing $45,000 by Feb. 8, 2021. By mid-April, prices hit new all-time highs of nearly $60,000. Institutional interest propelled its price further upward, and Bitcoin peaked at $59,890 on April 12, 2021.1
By the summer of 2021, however, prices were down by 50%, closing at $30,838 on July 19. September saw another bull run, with BTC scraping $52,660, but a significant drawdown led it to close at $42,200 about two weeks later.1
On Nov. 8, 2021, Bitcoin reached another all-time high of $67,549. In mid-December 2021, the asset fell to a close of $46,709. The price started fluctuating more as uncertainty about inflation and the emergence of a new variant of COVID-19, Omicron, continued to spook investors.12
Between January and May 2022, Bitcoin's price continued to gradually decline, with closing prices only reaching $47,100 by the end of March before falling further to $29,101 on May 23. This was the first time since July 2021 that Bitcoin closed under $30,000.1
On June 13, crypto prices plunged, dropping below $23,000 for the first time since December 2020. By the end of 2022, it was under $20,000.1
Fortunes changed in 2023, as Bitcoin opened the year at $16,688. It rose consistently throughout 2023, ending the year at $43,599.1
Important
On Dec. 5, 2024, Bitcoin broke through $100,000 on nearly every exchange following news about the appointment of a crypto-friendly SEC Commissioner.13 It continuously breaks records following news releases, leading many to wonder what Bitcoin will do next.
2024 Price History
In January 2024, the long fight for Bitcoin Spot ETFs came to a close after the SEC was forced by courts to review its denial of certain Bitcoin-related investment products.4 Some brokerages swarmed the market and increased their holdings, while others, like Grayscale's Bitcoin Trust (GBTC), experienced significant outflows at the onset.5
The outflows from certain funds slowed going into March, somewhat settling the market. The market-wide rebalancing was likely because there were suddenly more options for investors to choose from.
Early 2024
Bitcoin's price climbed quickly after the fund approvals—in late February and early March, it breached $60,000 again, setting a high of $72,125 on March 11 and another of $73,079 on March 13.1
Mid 2024
On April 19, 2024, Bitcoin had its fourth halving event, reducing the reward for a mined block from 6.25 BTC to 3.125 BTC. It recorded a modest gain that day and closed at $63,851.61
CoinMarketCap. "Bitcoin (BTC)."
On Sept. 18, 2024, the U.S. Federal Reserve announced its first rate cut since the start of the COVID-19 pandemic, lowering the target federal funds rate to 4.75% to 5%.7
Predictably, the market had a positive reaction, with gains across major indices. Bitcoin also continued its trend of "mimicking" the stock market and, on Sept. 19, 2024, traded around $63,000, sharply higher than its price of about $60,000 just two days prior.1
Late 2024
On Nov. 7, 2024, Bitcoin's price hit another all-time high of $75,902 following Donald Trump's re-election, a 9% increase from the closing price on Nov. 5. On Nov. 10, 2024, Bitcoin reached another milestone, crossing the $80,000 threshold.1
On Nov. 11, it continued pushing boundaries, and on Nov. 13, it made it past $90,000, closing at $90,574.1 Market exuberance was unfaltering in the following weeks, pushing Bitcoin to unbelievable highs of $99,817 on Oanda, $99,860 on Coinbase, and $99,852 on Gemini on Nov. 22, 2024, by midday.8910
On Dec. 8, 2024, Bitcoin broke through $100,000 and closed at $101,237.1
These significant increases are due to investor exuberance following Trump's many promises on the campaign trail, such as replacing Securities and Exchange Commission Chairman Gary Gensler, making America "the crypto capital of the world," and creating a "Strategic Bitcoin Reserve," among others.
2025 Price History
In January 2025, Bitcoin experienced a somewhat lateral market, even after the announcement that Microstrategy purchased $1.1 billion BTC on January 21. That day, prices closed at $106,136.1
On May 22, 2025, Bitcoin set another record, closing at $111,679. However, on Aug. 13, 2025, Bitcoin hit another high of $123,339 before dropping below $118,000 two days later, following a disappointing Producer Price Index (PPI) report.111
On Oct. 6, 2025, Bitcoin hit another all-time high of over $126,198.07. However, the excitement surrounding that milestone was short-lived because five days later, it declined to just over $110,000.
The decline continued through October and November, reaching a low of $84,648 on Nov. 22. By Dec. 1, Bitcoin made a slight recovery, closing at $92,119.1
What Affects Bitcoin's Price?
Supply and Demand
Like other currencies, products, or services within a country or economy, Bitcoin and other cryptocurrencies depend on perceived value, supply, and demand. If people believe that Bitcoin is worth a specific amount, they will buy it, especially if they think its value will increase.
Only 21 million Bitcoins will ever be created. The closer Bitcoin gets to its limit, the higher, theoretically, its price should be, assuming all other factors remain the same. This limit should keep increasing its value over time as new coins become more scarce, putting upward pressure on demand.12
Bitcoins are created by mining software and hardware at a specified rate. This rate splits in half every four years, slowing down the number of coins created. The last halving occurred on April 19, 2024. If events unfold as they've historically done, Bitcoin's price can rise again, but there's no guarantee that the market will react the same.13
Bitcoin's price should continue to rise as long as it continues to grow in popularity and its supply cannot meet demand. However, if popularity wanes and demand falls, there will be more supply than demand. Then, Bitcoin's price should drop unless it maintains its value for other reasons.
New Bitcoin Securities
Another factor that affects Bitcoin's price also relates to the supply and demand of related securities. Bitcoin became a financial instrument that investors and financial institutions use to store value and generate returns.
As a result, derivatives have been developed to broaden access to BTC for a wider range of investors. This also influences the demand for Bitcoins.
Speculation, investment product hype, irrational exuberance, and investor panic and fear can also be expected to affect Bitcoin's price because demand will rise and fall with investor sentiment.
As witnessed after the SEC approved Spot Bitcoin ETFs, regulatory activity causes market participants to take action. As new Bitcoin securities hit the market, Bitcoin's price will adjust due to the changes in supply and demand.
Bitcoin ETFs
In January 2024, the U.S. Securities and Exchange Commission authorized U.S. exchange-traded products to buy and hold Bitcoin directly on behalf of their investors.14
Before that, ETFs were only permitted to gain indirect exposure to bitcoin through futures contracts. In October 2024, the SEC approved options contracts on select spot Bitcoin ETFs. As of December 2025, there were 33 Bitcoin spot ETFs, with combined assets at about $124 billion.1516
Cryptocurrency Competition
Other cryptocurrencies may also affect Bitcoin's price. The utility of cryptocurrencies as a whole continues to grow as regulators, institutions, and merchants address concerns and adopt them as acceptable forms of payment and currency.
Lastly, if consumers and investors believe that other coins will prove to be more valuable than Bitcoin, demand will fall, taking prices with it. Or, demand will rise along with prices if sentiment and trading move in the bullish direction.
Is Bitcoin a Good Investment?
Bitcoin is a cryptocurrency designed as a payment method. Investors and traders also began using it as an investment, but its price is highly volatile. This creates a significant financial risk. It is best to talk to a professional financial advisor about your specific circumstances and goals before buying Bitcoin as an investment.
What Was Bitcoin's Best Price Ever?
Bitcoin reached an all-time high closing price of over $124,752 on Oct. 6, 2025.1
How Much Will 1 Bitcoin Be Worth in 2030?
It's difficult to predict what one BTC will be worth at any given moment because it is such a volatile asset. By 2030, one bitcoin could be worth millions or nothing, depending on what happens. The primary factors that play a role in bitcoin's price are supply, demand, competition, and regulation.
The Bottom Line
Since its launch in 2009, Bitcoin has remained a popular and closely followed asset and continues to demonstrate highly volatile price action. If past and recent events and prices are any indication, we can expect the volatility to continue as long as there is demand for it as an investment asset.
The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info. As of the date this article was written, the author does not own cryptocurrency.