Bitcoin’s 4 Bull Cycles Revisited: Tracing Back the BTC Prices from Cents to Thousands of Dollars
A recent post shared by crypto news outlet, Daily Hodl, assessed the giant, Bitcoin’s most crucial bull cycles experienced. Given cryptocurrencies’ nature, many experts have failed to predict where it might be headed. As per the claims made, exploring the different bull cycles might help investors understand any potential trend and possibly answer the most commonly asked question
Why is BTC so Volatile?
First Bull Cycle: September 2010 to June 2011
In this period, BTC shot from a price of 6 cents to 80 cents, which is equivalent to a 1,233% increase. It is supposedly not clear how the price shot up considering the fact that since its beginning, the trends were determined by investors who understood and appreciated BTC and its respective technology.
As per Daily Hodl, the bull run started with a “powerful, but non-parabolic rise,” and resulted in the average consumer investing in it. What went from 6 to 80 cents, led the giant to reach $36 (i.e. 4,400% increase!). Unfortunately, after such a hike, the prices shot back down, leaving many accusing BTC of being nothing more than a “failed experiment”.
Second Bull Cycle: October 2011 to April 2013
Prior to this cycle, BTC was sitting at approximately $2, down from $36 from the former cycle. As per the claims made, $2 turned into $10 (400% increase), which eventually turned to $260 (2500% increase) by April 2013. Like before, prices began to shoot back down and eventually allowed BTC to settle at $50.
Third Bull Cycle: April 2013 to December 2013
The third bull cycle experienced gradual growth as $50 turned into $100 only near October 1, 2013 reports Daily Hodl. This being said, the growth again was tremendous as the $100 eventually turned to $1,160, resulting in a 1,060% increase. Such increases are assumed to be in part because of investors’ overconfidence and positive coverage on the media, but eventually, the price shot down bringing BTC’s price to $150 by the beginning of 2015.
Fourth Bull Cycle: January 2015 to December 2017
This is where BTC remained in the thousand-dollar ranges, as the giant went from $1000 to $5000 (400% increase) to the most enjoyed, $20,000 (1900% increase altogether). The crash has also been the most devasting within the crypto sphere as it shot back down to nearly a third and presently, an eighteenth of a fraction.
Evidently, BTC has come across different hurdles before it could settle within the thousand-dollar ranges. The increase is still unimaginable considering the lows it had attained in the past. As for why Bitcoin always seems to drop in prices, it could primarily be investor interest.
With any investment strategy, the goal is to make a profit, therefore, those who started to invest early could have left. Other factors that should be taken into account include media coverage and the negative viewpoint many held and still continue to hold regarding its uses.
What are your thoughts on these bull cycles? Were you able to decipher something of significance? Share in the comments below!