Author: 636Marx

The Bitcoin symbol is a "B" with 2 vertical bars added, similar to the "$" symbol with an additional bar. BTC is the world's first truly decentralized digital currency, transforming from a niche digital experiment to a global financial force. The journey from a few cents to $100,000 reflects fundamental changes in technology, finance, and collective psychology. This article will explore the key events and catalysts behind Bitcoin's most important price breakthroughs, outlining its development from five-digit to six-digit levels.

I. Bitcoin's First $10,000, Crossing the Whole Number

In November 2017, Bitcoin broke through $10,000 for the first time, marking its formal entry into the mainstream financial realm. This milestone transformed Bitcoin from a geeky experiment to a globally recognized digital asset, attracting the attention of institutional investors for the first time.

Key Driving Factors

1. Mainstream Awareness: Bitcoin's rapid rise in 2017 captured public attention, with media coverage driving a widespread crypto investment frenzy.

2. Infrastructure Development: Platforms like MT.gox, Huobi, Coinbase, and OKex simplified the process for regular users to purchase and use wallets, making Bitcoin more accessible.

3. Speculative Fever: Driven by FOMO (fear of missing out), a flood of retail investors entered the market, pushing up prices.

Despite this milestone, Bitcoin still faced significant challenges. Mainstream media viewed it as a speculative bubble, while regulatory uncertainty and price volatility kept institutional investors on the sidelines.

II. Bitcoin's First Bull Run, $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 rally lacked solid fundamental support.

Key Driving Factors

1. ICO Frenzy: Blockchain startups mimicked the stock market's IPO, launching ICOs (Initial Coin Offerings). Most projects used Bitcoin as the primary investment medium, as "illegal fundraising" did not exist in Chinese law.

2. Market Sentiment: Crypto investment began to expand from first-tier cities to third- and fourth-tier cities, with optimistic expectations and bullish sentiment forming a self-reinforcing upward cycle.

3. Volatility: After reaching nearly $20,000 in December 2017, Bitcoin entered a long-term bear market, with its market value declining by more than 80% in 2018.

4. Regulatory Tightening: Governments around the world have strengthened regulations on ICOs and digital currencies.

On September 4, 2017, the People's Bank of China announced that ICOs were illegal financial activities and required related exchanges to shut down. After the project leaders were interviewed, the market reacted strongly to the government's determination to ban cryptocurrencies, leading to a price crash. The Beijing regulatory requirement to close exchanges by 24:00 on the 15th resulted in a 20% drop in Binance BTC on the 14th, and a drop to $2,817 on the 15th.

III. Bitcoin Breaks Through the Upward Resistance, Institutions Enter

In December 2020, Bitcoin approached $20,000 for the second time, but this rally was fundamentally different from the 2017 speculative frenzy. This increase was driven by institutional adoption and macroeconomic factors.

Key Driving Factors

1. Institutional Adoption: Companies like MicroStrategy and Tesla added Bitcoin to their balance sheets, validating its long-term value proposition.

2. Halving Effect: The third halving in May 2020 reduced Bitcoin's inflation rate, providing an upward impetus.

3. COVID-19 Pandemic: Economic uncertainty and unprecedented monetary stimulus measures prompted investors to view Bitcoin as an inflation hedge.

4. Volatility Opportunities: Due to Bitcoin's cyclical and volatile price movements, it attracted both long-term investors and cyclical investors.

A Chinese DIY Bitcoin mining company successfully listed on the Nasdaq on November 21, 2019, Beijing time 23:00, with the opening price up 40% from the IPO price, and a market value exceeding 100 billion RMB. The author believes that before the appearance of Bitcoin ETFs, mining was the primary way for capital to flow into Bitcoin. Zhang Nangeng's Janayneng overtook Wu Jihan's Bitmain, becoming the first blockchain stock!

IV. From $30,000 to $60,000: Retail Enthusiasm and Corporate Acceptance

From January to April 2021, Bitcoin rapidly climbed from $30,000 to over $60,000, with retail investment enthusiasm and institutional acceptance advancing in tandem.

Key Driving Factors

1. Tesla's Investment: Tesla's $15 billion Bitcoin investment and brief acceptance of Bitcoin as payment enhanced the legitimacy of digital currencies.

2. Social Media Momentum: The "laser eyes" movement on X (formerly Twitter) received widespread response from retail investors.

3. ETF Progress: The advancement of Bitcoin futures ETFs signaled a more open regulatory attitude.

In 2021, China officially banned Bitcoin mining. On May 12, "crypto KOL" Musk announced on X that Tesla had "suspended vehicle purchases using bitcoin" due to concerns about the "rapid increase in the use of fossil fuels for Bitcoin mining." After Musk's announcement, Bitcoin began to decline within minutes, suggesting that Musk was trying to influence Bitcoin's price.

V. Bitcoin Breaks $70,000 Barrier: Inflation and Hedging

In November 2021, Bitcoin approached $69,000, with its status as an inflation hedge and safe-haven asset strengthening during a period of geopolitical uncertainty.

Key Driving Factors

1. Inflation Concerns: Rising global inflation has highlighted Bitcoin's value as a deflationary asset.

2. Institutional Products: The approval of a Bitcoin futures ETF in the US expanded traditional investment channels.

3. Geopolitical Events: The Russia-Ukraine conflict underscored Bitcoin's value as a censorship-resistant asset.

On February 24, 2022, the political means to attack NATO's 6th eastward expansion failed, triggering a two-and-a-half-year Russia-Ukraine war. 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 annual GDP. Russia even showcased its military's Bitcoin mining facilities on "Red Star TV." The current Russia-Ukraine war has become a trench war of attrition, and it is unclear whether the war will end in the next two and a half years.

VI. Bitcoin $100,000 Babel Tower: Freedom and Greed

At the time of writing, Bitcoin has reached $99,419.99, and as it steadily approaches $100,000, multiple factors suggest that this milestone has a stronger foundation than mere speculation.

Key Driving Factors

1. Spot Bitcoin ETF: The potential approval of a spot Bitcoin ETF could unlock trillions in institutional capital.

2. 2024 Halving: The 2024 April halving will further tighten Bitcoin's supply, catalyzing a new bull market.

3. Global Adoption: El Salvador and the Central African Republic have adopted Bitcoin as legal tender, paving the way for wider acceptance.

4. De-dollarization: Countries seeking alternatives to the US dollar are adopting Bitcoin for international trade and reserves.

The Tower of Babel comes from the first volume of the Old Testament of Christianity, in which humans build a tower reaching to heaven. However, the shortcut to heaven is eventually destroyed by language and ambiguity. Bitcoin is the Tower of Babel that Satoshi Nakamoto tried to eliminate monetary inflation and the periodic risks of the banking system.

The first Bitcoin user was programmer Laszlo Hanyecz on May 22, 2010, who used 10,000 BTC to buy 2 pizzas. The first large-scale use was in February 2011 on the Dark Web "Silk Road", using Bitcoin to complete various illegal transactions. The Dark Web "Silk Road" was destroyed by the FBI in October 2013, with a transaction volume of an astonishing $214 million. This is astonishing because at that time, most Bitcoins were around $10 per coin. According to later statistics, the total sales of the "Silk Road" were about 952,000 Bitcoins.

Today, Bitcoin has been recognized by large listed companies and multinational corporations. Infinite divisibility, Bitcoin encapsulation and Altcoin derivatives are creating new monetary inflation. Periodic halving, crypto KOLs and institutional investors, Bitcoin is constantly producing new financial systemic risks.

The author saw in Stavrianos' "A Global History" that 50,000 years ago, humans had completed the migration of 7 continents, but the Silk Road in China only appeared in the Western Han Dynasty. Just like what is said in the Old Testament - a land flowing with milk and honey, a group of people speaking a single language - except that it happened in ancient East.

The author believes: the strategy of this "group of people speaking a single language" is the right one for Bitcoin. The World Bank report pointed out: "Bitcoin was not a deliberate Ponzi scheme."

The author believes: Bitcoin is a borderless pyramid scheme.