1. 2013: The first big bull run and China ban
• Rise: In April 2013, the price of Bitcoin rose rapidly from $100 to $260, mainly due to the safe-haven demand caused by the Cyprus financial crisis.
• Market crash: In December 2013, the People’s Bank of China banned financial institutions from processing Bitcoin transactions, and the price of Bitcoin fell from around $1,000 to a few hundred dollars.
2. 2017: Historic bull run and regulatory crackdown
• Rise: Throughout 2017, the price of Bitcoin rose from $1,000 to $20,000. Driving factors include the surge in global market interest in cryptocurrencies, the ICO (initial coin offering) boom, and widespread publicity for blockchain technology.
• Market crash: After hitting $20,000 in December 2017, Bitcoin quickly fell back, and a regulatory crackdown in early 2018 (including strict regulation of crypto trading in South Korea and China) caused the price of Bitcoin to fall below $6,000.
3. 2020-2021: Bull run during the pandemic and China ban
• Pull up:
Initial Rise: Bitcoin prices rose from around $4,000 in March 2020 to $29,000 by the end of the year, benefiting from economic stimulus policies during the global pandemic.
Institutional entry: From the second half of 2020 to early 2021, institutions such as MicroStrategy and Square and companies such as Tesla purchased large amounts of Bitcoin, and the price of Bitcoin reached US$50,000 in February 2021.
ETF launches and Defi boom: In early 2021, the first Bitcoin ETF was launched in Canada, driving the interest of institutional investors. At the same time, DeFi (decentralized finance) and GameFi (game finance) projects attracted a large number of investors, further boosting market sentiment, with Bitcoin reaching $64,000 in mid-April.
• Crash:
The 519 incident in the cryptocurrency circle: On May 19, 2021, China completely banned cryptocurrency transactions and mining activities, and the price of Bitcoin plummeted by 30%, from US$64,000 to below US$30,000.
Elon Musk impact: After Tesla announced that it would stop accepting Bitcoin payments, the price of Bitcoin fell sharply, further exacerbating market volatility.
4. 2022: Crypto Winter and Macroeconomic Factors
• Pull up:
In March 2022, the price of Bitcoin briefly rebounded from $40,000 to $48,000, mainly due to market expectations of a recovery in cryptocurrencies.
• Crash:
312 event in the cryptocurrency circle: In May 2022, the Luna and TerraUSD stablecoins collapsed, causing market panic and the price of Bitcoin plummeted to below US$20,000.
Macroeconomic pressures: The Federal Reserve’s rate hikes and rising global inflationary pressures have led to a continued decline in the prices of Bitcoin and other cryptocurrencies.
5. 2023-2024: Spot Bitcoin ETF and Market Rebound
• Pull up:
Spot Bitcoin ETF: From the end of 2023 to the beginning of 2024, the first spot Bitcoin ETF was launched in the United States, and the price of Bitcoin rose from around US$20,000 to US$64,000.
Halving expectations: The 2024 Bitcoin halving expectation has increased the market’s bullish sentiment, driving prices further up
• Crash:
SEC investigation: In February 2024, the U.S. Securities and Exchange Commission (SEC) investigated major cryptocurrency exchanges, and the price of Bitcoin fell back below $50,000.