While skeptics dismissed it as a fad, Bitcoin commenced on a jaw-dropping journey in 2017 that left financial experts scrambling for explanations. The numbers tell the story better than words ever could. Starting at a modest $997.69 in January, Bitcoin smashed through barrier after barrier – hitting $2,000 in May, cruising past $5,000 by September, and peaking at an eye-watering $19,783.06 on December 17. A 1,318% annual return. Yeah, you read that right.
What drove this insanity? A perfect storm. Mainstream media couldn’t get enough of crypto coverage. Every day, another headline. Retail investors poured in, afraid of missing the next big thing. Wall Street types, previously dismissive, suddenly became Bitcoin experts overnight. Funny how money changes perspectives.
The market cap exploded from $16.5 billion to a peak of $327 billion. Bigger than IBM. The world’s 6th most valuable currency. Not bad for “internet money.” This meteoric rise highlighted Bitcoin’s inherent scarcity, with only 21 million coins ever to be created. The Puell Multiple showed similar recovery patterns during this period, with miners experiencing substantial revenue growth ahead of the major price rally.
Trading volume followed suit – from under $100 million daily to a staggering $10 billion by November. Coinbase was adding 100,000 users. In a single day.
Infrastructure raced to keep up. Bitcoin ATMs doubled to over 2,000 worldwide. Major retailers started accepting crypto payments. The SegWit upgrade and Lightning Network promised to solve scaling issues. Over 10 million wallets created. Mass adoption seemed inevitable.
Regulators scrambled to respond. Japan embraced Bitcoin as legal tender. China went the opposite route, banning exchanges outright. The U.S. approved futures trading. Every country had an opinion. Investors remained anxious about their assets, with some exchanges offering cold storage solutions to protect digital holdings from potential hacks.
Meanwhile, Google searches for “Bitcoin” hit all-time highs. “HODL” became the battle cry of investors refusing to sell. Price predictions of $50,000 were thrown around casually. Comparisons to tulip mania grew frequent.
