Bitcoin's high volatility

While Satoshi Nakamoto originally invented Bitcoin to serve as a payment system, public sentiments and unclear regulations surrounding cryptocurrencies in several countries have made it highly volatile.

For example, Bitcoin jumped from just under $1 to $29.60 in 2011. However, its price quickly crashed, ending the year near the $5 mark. Between 2012 and 2013, Bitcoin picked up pace again, rising by over 3,000% to $1,121 before slumping nearly 84% to $172 in January 2015.

From 2015 to 2017, Bitcoin surged to $19,600 but eventually lost 83% of its value in the following year. While prices were range-bound in 2019, Bitcoin began a rally post-pandemic, increasing by 1,600% to a high of $68,900 in November 2021. Similarly to previous years, Bitcoin crashed to $16,000 in November 2022, picking up pace again in 2023 and eventually skyrocketing to $108,353 in November 2024 following the election of United States President Donald Trump. The top crypto eventually went on to establish an all-time high above $110,000 in 2025.

Bitcoin's charge above the $100,000 milestone was largely fueled by the launch of spot Bitcoin exchange-traded funds (ETFs), exposing it to a wide range of top institutional asset managers, including BlackRock and Fidelity.

This volatile history has made Bitcoin attractive among traders who speculate on its price using various fundamental and technical analysis indicators. Additionally, Bitcoin's deflationary features, including a halving mechanism and supply cap of 21 million BTC, have attracted investors who use it as a store of value and hedge against inflation. Hence, Bitcoin is considered ''digital Gold'' among its core enthusiasts.