History of the Bitcoin Bull Run: The origins and triggers

Since its creation in 2009 by a pseudonym known as Satoshi Nakamoto, Bitcoin has experienced periods of volatility and exponential growth.

Among the most emblematic moments of its evolution are the “Bull Runs” (periods of strong rise) which captivated the attention of investors and the general public.

In this article, we will explore in detail the main “Bull Runs” of Bitcoin since its birth, explaining the factors that contributed to these spectacular rises as well as the end of the cycle that followed them.

1/ The First Bull Run of 2011: Bitcoin as a means of payment

The very first “Bull Run” of Bitcoin occurred about two years after its creation in 2009. Although it may be excessive to talk about a Bull Run at that time, it nevertheless remains a period of undeniable rise in the price of bitcoin. At the time, Bitcoin had a relatively small user base, primarily comprised of news, developers, and crypto enthusiasts. The price increase was mainly attributed to curiosity and word of mouth in tech circles. On May 22, 2010, engineer Laslzo publishes an ad to pay for two pizzas for 10,000 bitcoins. The idea of ​​using bitcoin as a means of payment had just been born.

However, the first real spike in bitcoin prices occurred in 2011 when mainstream media started reporting on it. This reached a wider audience. This was mainly for reporting on events related to the “Silk Road” website, launched by Ross Ulbricht. It was a platform for selling illicit products on the darkweb that accepted bitcoin as a means of payment. This strongly contributed to (controversial) but increased publicity around bitcoin. The price then increased significantly, reaching parity with the US dollar for the first time.

Read the article : The Incredible Story of Ross Ulbricht, Silk Road, and the Rise of Bitcoin

2/ The Bull Run of 2013: The leverage of trading platforms

The “Bull Run” of 2013 is often considered Bitcoin’s first true rally, propelled by a combination of multiple factors. First, the growing adoption of Bitcoin by businesses and merchants has increased confidence in its value. Then, social media, particularly Reddit and Twitter, played a crucial role in creating a massive craze for Bitcoin, fueling “FOMO” (Fear of Missing Out) among many enthusiasts. The first popularizers and evangelists of Bitcoin like Bitcoin Jesus ou Andrea Antonopolous gave conferences on Bitcoin.

Furthermore, the emergence of first bitcoin exchanges in 2011 allowed easier access to investors around the world who wanted to buy bitcoin. At this time, the exchange platform Mt. Gox was then the undisputed leader, attracting a significant share of trading volumes. From August to December 2013, bitcoin went from $120 to its highest peak, crossing the $950 mark.

However, this period was also marked by concerns over the security of trading, and the sudden closure of Mt. Gox in 2014 led to a crisis of confidence in the market, which ended this initial bull run.

Read the article : The terrible fall of Mt Gox and Mark Karpelès

3/ The explosion of 2017: The attraction of the general public

The 2017 Bull Run was the most spectacular yet, propelling the price of Bitcoin to unprecedented highs. This period was marked by the entry of traditional financial institutions into the Bitcoin ecosystem. More generally, these were investment funds, investors and entrepreneurs who wanted to take advantage of the financial opportunities offered by this new industry.

The 2017 bull run was the one that attracted the most people who weren't necessarily initially interested in finance or trading. A wider and younger audience has been attracted to cryptocurrencies in general. This frenetic era is in fact marked by the advent of ICOs and the multitude of new cryptocurrencies which were born at this time, in particular, on the Ethereum network.

In 2017, for the first time, on December 17, 2013, bitcoin reached the price of $19. You should know that this price movement – ​​at the end of the year – is a characteristic that we often find in bull runs but also in bearish cycles.

Additionally, growing interest from Asian countries, especially Japan and China with miners, has contributed to the increase in trading volume. Japan has officially recognized Bitcoin as a legal payment method, boosting market demand. However, due to excessive speculation and lack of regulation in some countries, with bans such as in Venezuela or Morocco led to a brutal correction in 2018.

4/ The big splash of 2021: The adoption of Bitcoin and use cases for cryptocurrencies

After the “Bull Run” of 2017, the Bitcoin market plunged into a prolonged period of decline, commonly referred to as “crypto winter” where the price of Bitcoin fell from $19,500 to $3,600. .This phase was characterized by a series of price corrections and consolidations, which was a real test for the resilience of the cryptocurrency.

However, during the COVID-19 pandemic, the craze for cryptocurrencies and NFTs has marked a real frenzy on the part of investors and traders. In April 2021, bitcoin reached its all-time high of $63,300 and $68 in November of the same year. This has been a unique year where bitcoin has reached its two highest highs in the space of a year. Multiple companies have been created with new methods and products linked to cryptocurrencies such as yield farming, play-to-earn games, etc.

However, this euphoric period was abruptly stopped by the fall of the Terra blockchain and its algorithmic stablecoin UST. The bear market was then resounding with an increased loss of investor confidence. What followed was a black series of company closures including the second FTX exchange platform founded by Sam Bankman Fried. The year 2022 was then considered a year of hangovers where we updated the many crypto criminals that plague the industry.

Read the article : The year 2022 was evil but it's a good thing in the end

Future Outlook: Potential Factors for the Next Bull Run

As the Bitcoin market continues to mature, several factors could influence the next “Bull Run.” One of the most anticipated narratives is the increased adoption of Bitcoin by financial institutions such as BlackRock with the entry of Bitcoin ETF among others. This would strengthen its legitimacy as a store of value and investment asset and further legitimize bitcoin in the current financial landscape.

Perhaps this could be an essential element for the next bull run. However, it should also be noted that it is equally possible that we will not experience bull runs as exponential as those we have experienced so far. Indeed, The 2022 bear market is somewhat different, longer and more dramatic than other bear cycles in cryptocurrency history.

You can read this article to learn more about the characteristics of this bear market: Can we know when this bear market from hell will end?

However, bullish and bearish cycles are part of what constitutes a financial market and we can easily estimate that the price of bitcoin still has surprises and highest peaks in store for us... Indeed, during this period, Significant developments have taken place in the Bitcoin infrastructure, including protocol improvements, scalability and progress towards technology implementation Lightning Network, enabling faster and less expensive transactions.

This could mark the next bull run and in any case, it is certainly a positive point for ever greater adoption of bitcoin around the world.

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Note: This is not investment advice. Always do your own research.