Bitcoin's price journey since 2009: Supply limits, investor adoption and key market drivers

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Bitcoin was launched in 2009 when the Genesis block was mined on January 3, marking the creation of the first cryptocurrency. Prices were not tracked in the early phase as there was no formal trading market. Trading happened informally between early adopters until exchanges and market platforms developed later.

Bitcoin’s supply is limited to 21 million coins under its protocol design. This fixed supply continues to act as a key support factor. Over time, digital assets have gained interest from retail users, institutions, banks, corporates and governments. Broader macroeconomic factors such as moves in the US dollar, Federal Reserve policy and equity markets also influence price movements.

Bitcoin recently traded in a range from $83,000 to $91,000 within a week. Mining difficulty adjustments, competition from other cryptocurrencies and halving events have also played important roles in its price trend. Support from regulatory developments in major markets has contributed to new highs.

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The price journey shows a long-term pattern. In 2009, Bitcoin traded around $0.004 with very limited use. In 2010, the first recorded transaction led to two pizzas being bought for 10,000 bitcoins. That year, the price did not move above $0.50.

A repeating trend has been visible in four-year cycles. Between 2010 and 2013, Bitcoin moved sharply higher and reached an all-time high in the fourth year. A similar move happened again in the 2014-2017 cycle and again in 2018-2021. Each fourth year in the cycle has brought strong returns.

Volatility has remained part of Bitcoin’s trading pattern through each of these phases. In the most recent cycle, Bitcoin traded between $13,000 and $28,000 in the first three years, then touched $68,000 in 2021. In the current cycle, Bitcoin has traded mostly between $40,000 and $50,000 and later hit levels above $100,000 in 2024.

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