Bitcoin (BTC) price – EUR & USD

The price of Bitcoin (BTC) has historically fluctuated between $0.04865 (July 4, 2010) and $68,789.63 (November 10, 2021). Bitcoin is so valuable because of Bitcoin’s limited supply, long history, and growing popularity as an investment. The price of Bitcoin is formed in the market as a weighted average of the prices of the largest exchanges.

The price of Bitcoin follows the stock market more than is commonly believed. Bitcoin mining affects the price of Bitcoin, but less than before. The Bitcoin forecast for 2024 is positive.

Bitcoin (BTC) price history

The price of Bitcoin (BTC) has historically fluctuated between $0.04865 (July 4, 2010) and $68,789.63 (November 10, 2021). Bitcoin’s price history starts from July 2010. This information is based on historical data from Coinmarketcap.

Although Bitcoin was founded in January 2009, no Bitcoin exchanges or websites initially tracked the price. The popular Coinmarketcap lists Bitcoin’s price starting from July 2010, when the value of Bitcoin was around $0.6.

In April 2011, Bitcoin’s price exceeded one dollar for the first time. In June 2010, the price had already risen above 10 dollars! One hundred dollars was broken in March 2013, and in December of the same year, the Bitcoin price already broke the 1000 dollar mark!

Bitcoin’s price history is full of cycles lasting about four years. Those investors who bought Bitcoin at the 1000 dollar mark had to wait over three years for the price to rise to reach 1000 dollars again.

The next price rally was seen in 2017, which ended at $20,000 in mid-December. This started another dark bear market, which found the bottom a year later, in December 2018. Investors had to wait again for three years before the old all-time high was breached next time. This happened in December 2020 when the price again broke through the 20,000 dollar barrier.

The graphic below shows the Bitcoin price history since 2010.

bitcoin price

Many were expecting the history to repeat at the end of 2021. The $69,000 price at the beginning of November seemed to be the first step towards $100,000 and the climax of the bull market. However, the opposite happened. The price of Bitcoin turned down. Many feel that the end of 2021 broke the so-called four-year cycle.

The Bitcoin price made a historic crash in 2022. In the summer of 2022, the price of Bitcoin fell below the peak of the previous cycle for the first time. December 2022 also saw a situation where the Bitcoin price was lower than five years earlier on the same day for the first time.

The bear market of 2022 lasted a little over a year, as Bitcoin’s price turned upward in January 2023. The price broke $23,000 at the end of January and rose above $30,000 in March. A three-month-long consolidation started in March and ended in late June.

At the end of June, the price of Bitcoin started to rise sharply due to the spot Bitcoin ETF application made by Blackrock. The BTC price rose to over 30,000 dollars but quickly turned bearish again, and the third quarter of the year was a big disappointment.

The last quarter of 2023 was great for Bitcoin. The price began moving in late October and rose to more than 44,000 dollars by December. At the end of December, Bitcoin moved mostly sideways. Bitcoin’s price closed in 2023 at just over 42,000 dollars, which means an annual increase of more than 150 percent.

At the end of 2023, Bitcoin received a lot of boost from the spot ETF boom, in addition to the Fed’s interest rate hikes ending. The Fed’s monetary policy change caused Bitcoin and the stock market to run, and many indices ended up close to ATH levels at the end of 2023.

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Why is Bitcoin so valuable?

Bitcoin is so valuable because of Bitcoin’s limited supply, long history, and growing popularity as an investment. The unit price of Bitcoin is the highest on the market, and its market cap is also completely in a different class compared to others.

Satoshi Nakamoto has set a cap of 21 million units for BTC. No more Bitcoins will ever be created. An estimated 3-4 million bitcoins have also disappeared over the years, i.e., left the market.

At first glance, it might seem that 21 million bitcoins is a lot. Perhaps it was in the early years of Bitcoin when there were only a couple of thousand investors. Now, hundreds of millions of people are investing in Bitcoin. At its best, its market value has exceeded a trillion dollars, or 1000 billion.

When an asset of this size is divided into only 21 million parts, it is no wonder that the value of Bitcoin has risen to tens of thousands of dollars.

The reserve of many competing currencies is hundreds of millions or even billions. For a low unit price, certain meme coins intentionally devalue their currency by hundreds of billions. This attracts buyers.

The list below shows the Bitcoin exchange rate and the other major currencies on the market. As you can see, there are huge differences in unit prices.

bitcoin value

The second perspective is broader, i.e., why Bitcoin has any value – either a lot or a little. Bitcoin’s value is so high because it is a historically exceptional invention. Bitcoin is the first globally successful decentralized digital currency after decades of trying. Since its early days, Bitcoin has also gained enormous popularity and network effect.

Bitcoin has hundreds of millions of users, and its network is maintained by thousands of servers worldwide. Any such large network of actors would be worth a lot of money.

For investors, Bitcoin is also a globally known and immeasurably valuable brand. It is no wonder that the Bitcoin price is tens of thousands of dollars, and the market cap of Bitcoin is almost as big as that of other cryptos combined.

To understand Bitcoin better, check out our comprehensive beginner’s guide: What is Bitcoin?

How is the Bitcoin price formed?

The price of Bitcoin is formed in the market as a weighted average of the prices of the largest exchanges. When you look at the Bitcoin price on this page in euros or dollars, it is an average, not a quote from any individual exchange.

Bitcoin price must be built as a weighted average due to the nature of the global and decentralized market. The situation is completely different with traditional stock exchanges. A certain share is often quoted on one exchange. The share can also be listed on several different stock exchanges. If this is the case, investors make sure arbitrages are removed quickly.

The global Bitcoin market also works with the same idea. Even though Bitcoin can be bought from thousands of different exchanges, there are very few price differences. The image below shows the Bitcoin price on the largest exchanges. As you can see, the differences are only tenths of a percent.

bitcoin price exchanges

The bull market often generates the largest arbitrage. For example, the local population in Japan and South Korea uses big crypto exchanges almost exclusively. The Bitcoin price may have been 10–15 percent higher in Korea compared to the global market. This is called the Kimchi Premium. The arbitrage can exist for quite a long time because few people can exploit it.

So, the global Bitcoin price on this page is a weighted average of the largest exchanges. The bigger the trading volume, the more weight the exchange gets. However, no one can buy bitcoins at the global rate. You buy bitcoins at the rate that the exchange you use has. It can be momentarily higher or lower than the global market price.

In addition to this, there may be small differences within the exchange depending on the trading pair. If you buy bitcoins with euros, dollars, or, e.g., USDT stablecoins, the Bitcoin exchange rate will probably differ slightly for each pair. However, the differences are marginal, and the ordinary investor should not worry about them.

The price of Bitcoin follows the stock market

The price of Bitcoin follows the stock market more than is commonly believed. Bitcoin has often been seen as an asset detached from the rest of the market, but its price has been correlated with stock market movements for several years.

In the early 2010s, the Bitcoin price still lived its own life. It was a very small asset class that was difficult for professional investors to buy. Mostly, a small group of amateurs and geeks interested in technology bought bitcoins. The exchange price fluctuated up and down regardless of the rest of the market.

Bitcoin entered the mainstream as an asset class during the 2017 rally. At the same time, it became easier to buy, and in recent years, various derivatives and other instruments have also entered the market. Wall Street has also taken its share of Bitcoin and entered the market.

This has led Bitcoin to behave much more like traditional asset classes. It is still considered a high-risk asset, indicating a correlation, especially with technology stocks.

In 2021, the narrative that Bitcoin is digital gold and inflation protection is still strong. However, the crashes of 2018, 2020, and 2022 have proven that the price of Bitcoin does not follow gold but technology stocks. It is a high-risk asset.

The Bitcoin price will, therefore, rise in a similar environment as other high-risk assets. This means liquidity, cheap money, and a positive mentality of investors in the market. This has been enjoyed for the most part for the previous 10+ years.

Does mining affect Bitcoin’s price?

Bitcoin mining affects the price of Bitcoin, but less than before. Nowadays, mining is a very professional activity, and the mined coins are not sold immediately, reducing negative pressure on the Bitcoin price.

Changes in the Bitcoin price also affect miners. The 2022 bear market was a good example of this. Many listed mining farms have gone bankrupt due to the low BTC price and investments made with debt during the boom.

In the early years of Bitcoin, the miners were smaller entities and sold their mined bitcoins to the market. Today, mining farms are hundreds of millions or billions of dollars in size and can hold their coins for years.

Will the Bitcoin price rise if the mining power of the network increases? This is an often-repeated claim. Bitcoin’s mining power, or hash rate, has been on the rise for years, even though the price of Bitcoin has gone in the other direction. Will the mining power ultimately drive the price or vice versa? Time will tell.

Bitcoin mining impacts the price, but the impact also works in the other direction. If the price of Bitcoin falls too much and for too long, it will force miners to sell more and more bitcoins… which will make the price fall even more.

An investor should look at Bitcoin’s hash rate development and be satisfied if it increases. This shows that many investors believe in the rise of the price in the long run and have invested billions of dollars in the infrastructure of the Bitcoin network.

Bitcoin’s Price Forecast for 2024

The Bitcoin forecast for 2024 is positive. We predict that the market will recover from a long period of decline at the end of 2023, and the Bitcoin halving in the spring of 2024 will bring more leverage to the price!

Many Bitcoin investors still believe in Bitcoin’s four-year cycles. This is even though the rise seen at the end of 2021 stopped earlier than expected, and Bitcoin did not make the same rise as in previous cycles.

These four-year cycles have traditionally been fueled by Bitcoin halving events, i.e., block rewards halving. The previous one was seen in May 2020, and the next one will happen in the spring of 2024. Many Bitcoin predictions are based on these events.

We do not believe that the halving event is significant anymore. This is because well over 90 percent of Bitcoin is already on the market, so the number of new coins is negligible compared to the entire reserve. To read more about it, check this article: Bitcoin Halving 2024.

In our opinion, the Bitcoin forecast 2024 must be based on the movements of the equities market. As previously reported, the Bitcoin price now follows more stocks than halvings. Monetary policy will probably begin to loosen, and central banks’ policy rates will decrease in 2024.

The Bitcoin price in the euro and the price in the dollar will likely move in the same direction. The relationship between the euro and the dollar is unlikely to change significantly during 2024.