The minimum price of Bitcoin in 2014 implied an increase of 2,300% compared to 2013. Since 2013, the first cryptocurrency has never been below USD 177 again.
Among Bitcoin’s qualities is the growth of its value with respect to fiat currencies throughout its history. Although volatility has been a prominent factor among cryptocurrency detractors, an analysis of its behavior since 2010 shows that the minimum value of BTC per year has increased steadily.
According to data from Buy Bitcoin Worldwide, the minimum value of BTC with respect to the US dollar has been growing, with only one exception. Between 2014 and 2015, the minimum price of the pioneering cryptocurrency in the ecosystem fell from USD 319.64 to USD 177.28. As for the rest, every year there has been an increase with respect to the previous 365 days.
For instance, the lowest value recorded in 2010, the year after Satoshi Nakamoto created Bitcoin, was USD 0.06. For the following year, the lowest price was almost 5 times higher, and it was never below USD 0.29.
In 2012, the growth was even greater. Throughout that year, the lowest price of Bitcoin in the market was USD 4.22, which represents an increase of 1,355% with respect to the previous year.
For 2013, the minimum levels had an increase of more than 200%, going to USD 13.30. In 2014, the cryptocurrency had the largest increase of this type in its history. In total, the lowest price of BTC in the whole year was 2,303.31% higher than the one registered in 2013. At its worst time during the year, the value of Bitcoin was USD 319.64.
In 2015, BTC experienced its only annual downturn with respect to its minimum price. In the following years, the rate of gains was resumed. In 2016, the lowest price was USD 358.77, then Bitcoin had its worst time in 2017 at USD 775.98, and last year the lowest price was USD 3,214.39.
Until now in 2019, after finishing the first 8 months, the bullish trend has remained. The lowest price has been USD 3,385.97, according to Buy Bitcoin Worldwide, which is 5.34% above the previous record.
Although the current value of Bitcoin is over USD 10,220, at the time of writing this note, the cryptocurrency is far from its all-time high. In late 2017, the price of Bitcoin was close to USD 20,000, as indicated by CoinMarketCap.
Bitcoin Volatility in the Cryptocurrency Market
Volatility is a characteristic of the cryptocurrency market. However, Messari analysts estimate that Bitcoin and other cryptocurrencies with high market capitalization are less susceptible to these price fluctuations, compared to cryptocurrencies with lower market capitalization.
According to recent research published by Messari a few weeks ago, cryptocurrencies with greater market capitalization have an annual volatility of around 90%. Messari researchers add that this percentage keeps growing as capitalizations become lower.
Regarding the volatility of Bitcoin in recent weeks, there has been a significant fall. According to figures from Blockforce Capital and Digital Asset Data, the cryptocurrency’s 30-day volatility dropped more than 50% between July and August of this year, from 131% on July 19th to 64% on August 25th.
By Willmen Blanco