Bitcoin is a secure digital currency that has attracted the interests of several investors. Also, Investing in it may seem scary to some people at first. But as you give time to understand more about it, you will be able to easily understand how it works. Bitcoins are generally used as a form of investment and can be used as a form of currency.
Satoshi Nakamoto proposed the development of cryptocurrencies. It was back in 2009 that bitcoins came into existence. They were developed to create a currency structure that did not involve the banking system. Instead, it would function as a decentralized ledger or blockchain.
It is a value transfer or payment method that is independent of government authorities. Thus, Bitcoins can be used pan-global. Today, there are twenty-one million Bitcoins present around the world. Risks are involved in all types of trading, and cryptocurrencies are no different. There are numerous sites like kafila.org that provide complete guidance on safe crypto investing. With their help, you can earn millions by trading cryptos. The value may experience a surge at any point in time. This article will talk about the five biggest bitcoin price jumps in the last five years.
Sudden and Unexpected Recovery after a Big Drop- January 2015
On 15th January 2015, the condition of cryptocurrencies was quite bad. Its valuation dipped down to one hundred and seventy dollars, falling over 22% in less than 24 hours.
However, the cryptocurrency bounced back for the next two weeks.
Expected Reason: The dramatic fall in the prices of crude oil is responsible for this price jump. A stable recovery was staged by BTC from $170 (15th January 2015) to nearly $200 after seven days. After that, the value of BTC surged to $300 right from $240 (23rd January 2015). Thus, it made a quick reversal in its price fall, which witnessed the cryptocurrency dip to a risky low level. It was also the last time that the Bitcoin was traded for less than two hundred dollars.
Bitcoin’s value responded to delay in Hard Fork- July 2017
Many current investors fondly remember 2017 as Bitcoin’s year. This was the year in which Bitcoin’s value increased manifold, and it garnered mainstream attention.
In July 2017, the Bitcoin’s value increased by more than twenty-eight percent in twenty-four hours.
Expected Reason: This followed after news broke out that a hard fork of Bitcoin has been averted. It developed fear in the market at that time, stemming from the concerns that the situation would hurt most investors’ confidence. Miners united around the SegWit (BIP 91) Proposal to improve BTC’s efficiency while avoiding an original code’s fork.
However, in the past two years, forks have become more mainstream and commonplace.
As the news followed, the investors queued up to catch this upward rise. As a result, BTC climbed to $3000 from $2300 in a couple of hours.
The Big Bulls take control- December 2017
The financial markets all over the world experienced the wildest of the rides in December 2017.
The value of Bitcoin increased exponentially throughout this year, bringing Bitcoin and BTC into the global spotlight and minting crypto millionaires overnight.
The dream bull run seemed no end as this cryptocurrency was trading for over $7300 in November 2017.
Expected Reason: The reasons for this upsurge is yet not clear. The value of Bitcoin rose from the U.S. $9600 (22nd November 2017) to $16500 (7th December 2017). On the same day, BTC also climbed to almost $20000 from $16000 in twenty-four hours. The Bitcoin’s price also increased to $2000 on the GDAX Exchange of Coinbase in 20 minutes.
April Fools’ Day and Brexit: April 2019
BTC’s value made an unforeseen jump on 1st April 2019 after a fall in the price 2018-2019. This period was called the ‘Crypto Winter’ season of the year for investment.
The March trading for Bitcoin was closed at $4000+. It was a welcome sign for investors as they had witnessed BTC fall from the U.S. $19000 to $3000 a year ago.
Initially, many trade analysts saw this value increase as a final move from the Bitcoin Bulls. However, Bitcoin’s price continually increased through 1st April 2019, breaking over $5000 in twenty-four hours.
Expected Reason: Some believed that a possible reason for the increase in the price of the Bitcoin was an April Fools article.
The referred article claimed that a meeting is being held by the U.S. Securities and Exchange Commission for approving a Bitcoin exchange-traded fund. Finance Magnates published this article.
While others believed that the price increase was due to all the buzz and news surrounding Brexit, it was thought that the demand for crypto assets would increase if there’s a no-deal situation for the United Kingdom and the European Union.
However, in reality, a big fund bought into the market when there were fewer sellers due to the price declines for more than a year.
President Jinping’s Speech- October 2019
The last week of October in 2019 witnessed the price jump of Bitcoin from $7400 to $9500. The value increases by $3000 in just a couple of hours.
Expected Reason: On 24th October 2019, China’s President praised the Blockchain technology. He also talked about how this industry is serving as a route to promote growth in China.
In countries where the flow of currency is subject to strict government control and action, Cryptocurrencies provides a system to transfer money to parts across the globe where the restrictions are less troublesome. However, just like any other currency, cryptocurrencies are also subjected to a surge in prices.
Above mentioned were the five such occasions where the price of the cryptocurrencies surged. Such a situation is quite beneficial to investors as they can earn a huge profit from it. However, these are not entirely safe. Cryptocurrencies will also continue to interest transactions related to illegal and nefarious activities as the transactions made using these coins are anonymous.