The price of Bitcoin has been rising significantly, approaching its all-time high of $19,497 (achieved on Dec 16, 2017). As of Wednesday closing, one Bitcoin was valued at $17,804.
Potentially emboldened by the coronavirus crisis and the search for perceived safe-haven assets, the cryptocurrency started a rally in early 2020. In 2019, the decentralized currency managed to temporarily crack the $13,000 mark around the time of Facebook’s announcement that it was starting its own cryptocurrency, Libra, which could have played a part in reviving interest in Bitcoin after a prolonged period of losses and stagnancy that started in 2018.
Late 2017 and early 2018 was the heyday of Bitcoin, with a single coin fetching prices above US$15,000. As the coin’s value shrank subsequently, many thought the hype around cryptocurrency had blown over.
In May, Bitcoin experienced a so-called “halving” for the first time in almost four years. The halving cuts the reward Bitcoin miners receive for their transactions in half, making it double as hard to “produce” bitcoin. A Bitcoin halving is triggered after an increment of 210,000 Bitcoin have been mined. The total number of Bitcoin is capped at 21 million and the halving was Bitcoin’s 88th, leaving 12 halvings until the supply of Bitcoin is depleated for good. Yet, as it gets harder and harder to mine, the frequency of halvings should continue to fall.
This chart shows changes in the value of Bitcoin during one year (2017-2020).
