Annual averages reflect a steady growth in Bitcoin’s price
If the price maintains current levels, this year will also close with a higher average. Despite the bearish market of 2018, the average was higher than that of 2017.
In addition to the well-known volatility of Bitcoin’s price, there are certain constants in its market behavior. For instance, the annual averages of Bitcoin’s price have grown steadily, even with the bearish market of 2018 after approaching USD 20,000, at its all-time high reached in late 2017.
Analyzing historical data of Bitcoin’s price in Buy Bitcoin Worldwide, we find this increase in annual averages, beyond the highs and lows that in each of those years, since mid-2010. In those beginnings of Bitcoin, between August and late 2010, the cryptocurrency’s average value was USD 0.14.
In 2011 there was already a significant increase in that average. During those 12 months, Bitcoin’s average value was about USD 5.5 per unit. The difference of that price compared to the previous year represents an increase of over 3,800%. That year, Bitcoin’s price experienced its best moment in mid-June, when it was very close to reaching USD 30.
For 2012, Bitcoin’s average price was above USD 8.2. Although it was higher than that of the previous year, during 2012 the price never reached the highest levels of 2011. In fact, Bitcoin’s value in the market did not even reach USD 15 in that 12-month period.
In 2013, a significant percentage increase was experienced again, since the average price was more than USD 200. That same year, Bitcoin first approached the USD 1,000 barrier in early December, but it fell short. In 2014, there was a new jump, exceeding USD 500 on average, after having started the year above USD 800.
The only year when the average fell with respect to the previous 12 months was 2015. That year, Bitcoin’s price averaged around 50% less than in 2014, barely surpassing USD 250. The following year the price recovered again and the average went above USD 570.
Only in 2015, Bitcoin’s average price fell compared to the previous year, according to data from Buy Bitcoin Worldwide.
All-Time Highs, Bearish Market and Current Affairs
During the last months of the next year, the largest bullish rally in Bitcoin’s history occurred, approaching USD 20,000 toward the end of the year. In 2017, the average was at just over USD 4,000, considering that that barrier had not yet been surpassed until August. In fact, until May of that year Bitcoin price had not even reached USD 2,000.
In 2018, the market maintained a bearish trend with respect to late 2019. In fact, by the end of 2018, Bitcoin’s price had already fallen to the USD 4,000 barrier. However, the average price was around 75% of increase compared to 2017, with more than USD 7,000.
Until now in 2019, the average is close to that of last year until the end of August. To lower that average, Bitcoin’s price would have to fall from almost USD 11,000 to below USD 7,000 and remain so until the end of the year. The pace that it has maintained so far this year is the opposite, even having experienced low levels of volatility in recent weeks. It was only between January and February when there was a drop in the average price.
By Willmen Blanco