Bitcoin's Journey from $1 to $100,000

From starting at just $1 in 2011 to the historic milestone of surpassing $100,000 by the end of 2024, Bitcoin's journey can be considered quite spectacular.

In just over a decade, Bitcoin has evolved from an experimental digital currency into a global financial phenomenon. In addition to its own success, Bitcoin is also the foundation of a thriving cryptocurrency ecosystem.

Bitcoin has enjoyed a strong resurgence in the years since COVID-19, but the journey has not always been smooth. Bitcoin reached its first major milestone in 2017, reaching nearly $20,000 before plummeting to nearly $3,000 by the end of 2018. The crash, which some have likened to the dot-com bubble, was sparked by concerns that the cryptocurrency market was dominated by financial fraud and could be easily wiped out with just a government request.

While these concerns held back Bitcoin's growth for several years, the cryptocurrency exploded in March 2021, hitting $60,000 thanks to growing interest from financial institutions and some investors seeing it as a potential inflation hedge.

Bitcoin has seen strong fluctuations many times, especially since the COVID-19 pandemic broke out. (Illustration photo: Morningstar)

However, this peak did not last long as Bitcoin lost nearly half of its value by mid-2021. According to Time , the main reason is China's strong control over Bitcoin mining activities, along with Elon Musk's announcement that Tesla will temporarily stop accepting payments in this cryptocurrency.

By November 2021, Bitcoin had risen back to $69,000, but then the US Federal Reserve raised interest rates to curb inflation, causing investors to shun risky assets like Bitcoin, leading to the "crypto winter" referred to by the World Economic Forum. Investor confidence was further shaken when the FTX exchange - one of the world's largest cryptocurrency platforms - collapsed in late 2022, causing Bitcoin to end the year at $16,548.

A key factor driving Bitcoin's price recovery from early 2023 is the Fed's slowing rate hikes, which has increased the appeal of risky assets. Coupled with the approval of Bitcoin ETFs by the US financial regulator earlier this year, Bitcoin has seen a significant recovery. From $16,548 in 2022, Bitcoin ended 2023 at around $42,000, quickly climbing to a new peak of $68,000 in March this year and continuing to soar after the results of the US presidential election.

If someone invested $1,000 in January 2024, they would see their investment grow 2.5 times this year alone.

If you invested $1,000 in Bitcoin in early 2020, when the COVID-19 pandemic broke out, you would have reaped a 1,220% growth over the years.

If you invested $1,000 in Bitcoin in 2013, that investment would now be worth 146,714%, or more than $1.4 million, as of December 5.

Bright prospects under Trump

Bitcoin's value has more than doubled this year and is up about 45% in the four weeks since Mr. Trump's landslide election victory, which coincided with the emergence of a slew of pro-crypto lawmakers in the U.S. Congress .

More than 16 years after its inception, Bitcoin appears to be moving closer to mainstream financial acceptance, despite criticism and a controversial history.

“ Bitcoin crossing $100,000 is not just a milestone, it is a testament to major changes in finance, technology and geopolitics, ” said Justin D’Anethan, an independent cryptocurrency analyst in Hong Kong, noting that a figure once considered unrealistic has now been achieved.

Mr. Trump showed strong support for digital assets during his election campaign, pledging to make the United States the “cryptocurrency capital of the world” and build a national Bitcoin reserve.

Cryptocurrency investors expect the scrutiny from US Securities and Exchange Commission (SEC) Chairman Gary Gensler to end, after he announced he would step down in January when Trump takes office.

On December 4, Trump announced that he would nominate Paul Atkins, a former SEC commissioner and co-chair of the Token Alliance, to lead the agency. The Token Alliance will promote “best practices for the issuance and trading of digital assets” and is part of the Chamber of Digital Commerce.

Several cryptocurrency companies such as Ripple, Kraken and Circle are vying for a spot on a cryptocurrency advisory council that Trump has promised to contribute to his plans for policy reform in the US.

Mr. Trump’s businesses are likely to get involved in the space as well. In September, he launched a new cryptocurrency business, World Liberty Financial. While details are limited, President-elect Trump’s personal interest in the space is seen by investors as a positive sign.

Additionally, billionaire Elon Musk, a major ally of Mr. Trump, is also a strong supporter of cryptocurrencies.

Source: https://baolangson.vn/hanh-trinh-tu-1-usd-den-100-000-usd-cua-bitcoin-5030900.html