A Brief History of Bitcoin's Rise: Travel Notes from $10,000 to $100,000
As the author writes this, Bitcoin has reached $99,419.99. As Bitcoin approaches $100,000, multiple factors indicate that the achievement of this milestone is based on more than mere speculation.Author: 636Marx
The Bitcoin symbol is a "B" with two vertical lines added, similar to the dollar sign "$" with an additional line. BTC is the world's first truly decentralized digital currency, and its transformation from a niche digital experiment to a global financial force is remarkable. The journey from a few cents to $100,000 reflects a fundamental shift in technology, finance, and collective psychology. This article will explore the key events and catalysts behind Bitcoin's most significant price breakthroughs, outlining the trajectory from five figures to six figures.
I. Bitcoin's First $10,000 Breakthrough
In November 2017, Bitcoin first broke through $10,000, marking its official entry into the mainstream financial arena. This milestone transformed Bitcoin from a geek exploration object into a globally recognized digital asset, attracting widespread attention from institutional investors for the first time.
Key Drivers
Mainstream Awareness: Bitcoin's rapid rise in 2017 captured public attention, and media coverage fueled a widespread crypto investment frenzy.
Infrastructure Development: Platforms like MT.gox, Huobi, Coinbase, and OKex simplified the purchasing and wallet usage process for ordinary users, making Bitcoin more accessible.
Speculative Frenzy: Driven by FOMO (fear of missing out), a large number of retail investors flooded into the market, pushing prices higher.
Despite reaching this milestone, Bitcoin still faced significant crises. Mainstream media viewed it as a speculative bubble, while government regulatory uncertainties and price volatility kept institutional investors on the sidelines.
II. Bitcoin's First Major Bull Market: $20,000
At the end of 2017, Bitcoin soared from $10,000 to $20,000, experiencing a period of intense speculation. Although the price doubled in just a few weeks, this surge lacked solid fundamental support.
Key Drivers
ICO Boom: Blockchain startups began to mimic stock market IPOs by launching ICOs (Initial Coin Offerings). Most projects used Bitcoin as the primary investment medium, as there was no "illegal fundraising" in Chinese law.
Market Sentiment: Crypto investment began to expand from first-tier cities to third and fourth-tier cities, creating a self-reinforcing upward cycle fueled by optimistic expectations and bullish sentiment.
Volatility: After reaching nearly $20,000 in December 2017, Bitcoin entered a prolonged bear market, with its market value evaporating by over 80% in 2018.
Regulatory Tightening: Governments worldwide intensified regulations on ICOs and digital currencies.
On September 4, 2017, the People's Bank of China declared ICOs illegal financial activities and ordered related exchanges to shut down. After the heads of crypto projects were summoned for talks, the market reacted strongly to the government's determination to ban cryptocurrencies, leading to a price crash. Beijing's regulatory requirement mandated the closure of exchanges by 24:00 on the 15th, and on the 14th, Binance's BTC dropped over 20%, falling to $2,817 on the 15th.
III. Bitcoin Breaks Through the Price Ceiling: Institutional Entry
In December 2020, Bitcoin approached $20,000 for the second time, fundamentally different from the speculative frenzy of 2017. This rise was driven by institutional interest and macroeconomic factors.
Key Drivers
Institutional Adoption: Large companies like MicroStrategy and Tesla incorporated Bitcoin into their balance sheets, validating its long-term value proposition.
Halving Effect: The third halving in May 2020 reduced Bitcoin's inflation rate, creating upward momentum.
COVID-19 Pandemic: Economic uncertainty and unprecedented monetary stimulus prompted investors to view Bitcoin as a hedge against inflation.
Volatility Opportunities: At this time, Bitcoin's price exhibited significant cyclical volatility, giving rise to many long-term and cyclical investors.
A Chinese DIY Bitcoin mining company successfully went public on NASDAQ at 23:00 Beijing time on November 21, 2019. The stock price surged 40% from its IPO opening price, with a market value exceeding 10 billion RMB. I believe that before the emergence of Bitcoin ETFs, mining was the primary source of capital inflow into Bitcoin. Zhang Nengeng's Canaan Creative outpaced Wu Jihan's Bitmain, becoming the first blockchain stock!
IV. From $30,000 to $60,000: Retail Enthusiasm and Corporate Recognition
From January to April 2021, Bitcoin rapidly climbed from $30,000 to over $60,000, with retail investor enthusiasm and institutional recognition advancing in tandem.
Key Drivers
Tesla Investment: Tesla's $1.5 billion investment in Bitcoin and its brief acceptance of Bitcoin payments enhanced the legitimacy of digital currencies.
Social Media Momentum: The "laser eyes" movement on X (formerly Twitter) received widespread response from retail investors.
ETF Progress: Bitcoin futures ETFs gained traction, indicating a more open regulatory attitude.
In 2021, China explicitly banned Bitcoin mining. On May 12, "crypto KOL" Elon Musk stated on X that Tesla had "suspended vehicle purchases using bitcoin" due to concerns over the "rapidly increasing use of fossil fuels for Bitcoin mining." Following Musk's announcement, Bitcoin began to decline within minutes, as he seemed to attempt to influence Bitcoin's price.
V. Bitcoin Breaks Through the $70,000 Barrier: Inflation and Hedging
In November 2021, Bitcoin approached $69,000, reinforcing its status as a hedge against inflation and a safe-haven asset during periods of geopolitical uncertainty.
Key Drivers
Inflation Concerns: Rising global inflation highlighted Bitcoin's value as a deflationary asset.
Institutional Products: The U.S. approved Bitcoin futures ETFs, broadening traditional investment channels.
Geopolitical Events: The Russia-Ukraine conflict underscored Bitcoin's value as a censorship-resistant asset.
On February 24, 2022, political maneuvers to thwart NATO's sixth eastward expansion failed, triggering a two-and-a-half-year war between Russia and Ukraine. The West donated hundreds of millions of dollars in Bitcoin to Zelensky, with documented donations exceeding $80 million. Russia had $300 billion in sovereign assets frozen, equivalent to 20.27% of its GDP that year, and even showcased military Bitcoin mining operations on "Red Star TV." The ongoing Russia-Ukraine war has devolved into a trench warfare scenario, leaving uncertain whether it will conclude in the next two and a half years.
VI. Bitcoin's $100,000 Babel Tower: Freedom and Greed
As I write this, Bitcoin has reached $99,419.99. As Bitcoin approaches $100,000, multiple factors suggest that achieving this milestone is based on more than mere speculation.
Key Drivers
Spot Bitcoin ETF: The potential approval of a spot ETF could unleash trillions in institutional capital.
2024 Halving: The halving in April 2024 will further tighten Bitcoin's supply, catalyzing a new bull market.
Global Adoption: El Salvador and the Central African Republic have adopted Bitcoin as legal tender, paving the way for broader acceptance.
De-dollarization: Countries seeking alternatives to the dollar are using Bitcoin for international trade and reserves.
The Babel Tower comes from the first book of the Christian Old Testament, where humanity builds a tower to reach heaven. Ultimately, the shortcut to heaven is destroyed by language and ambiguity. Bitcoin is Satoshi Nakamoto's attempt to eliminate currency inflation and the cyclical risks of the banking system.
The first user of Bitcoin was programmer Laszlo Hanyecz, who used 10,000 BTC to buy two pizzas on May 22, 2010. The first large-scale use occurred in February 2011 on the dark web "Silk Road," where Bitcoin was used for various illegal transactions. The Silk Road was dismantled by the FBI in October 2013, with a staggering transaction volume of $214 million. This is astonishing, as Bitcoin was mostly around $10 per coin at that time. Later statistics indicate that the total sales on the Silk Road amounted to approximately 9.52 million Bitcoins.
Today, Bitcoin has been recognized by large publicly traded companies and multinational enterprises. Its infinite divisibility, Bitcoin encapsulation, and the emergence of altcoins are creating new inflation. Cyclical halving, crypto KOLs, and institutional investors are continuously generating new systemic financial risks for Bitcoin.
I saw in Stavridis's "A Global History" that humans completed migrations across seven continents 50,000 years ago, while the Silk Road in China only emerged during the Western Han Dynasty. As the Old Testament says—"a land flowing with milk and honey, a people speaking a single language"—it merely occurred in the ancient East.
I believe that this "people speaking a single language" should adopt the correct strategy towards Bitcoin. The World Bank pointed out in its report: "Bitcoin was not a deliberate Ponzi scheme."
I believe that Bitcoin is a borderless pyramid scheme.
