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Cryptocurrency
To the Moon: Will the Bitcoin price keep going up?
What does ‘mooning’ mean?
‘Mooning’ is a term used by crypto enthusiasts to refer to the continuous growth in the price of cryptocurrencies. It derives from the phrase ‘going to the moon’ that occurs when a cryptocurrency’s price skyrockets so high, it goes off the charts. For mooning to happen, the rise in price should be rapid and sharp over a period of time. Visually, the chart should show a steady upward trend.
Aside from using it to describe how the chart looks, ‘mooning’ is also used when predicting the movement of the market price. It’s an optimistic term that holds positive sentiment on how the chart will move in the coming days.
To the moon🚀
When using the phrase ‘to the moon’, people refer to a strong belief that a certain coin’s price will significantly rise or continue to do so. ‘Mooning’ and ‘going to the moon’ are some of the most widely used terms in the crypto community alongside ‘Hold On To Dear Life’ (HODL). While people usually use it when predicting the price’s movement, some also use it to hype people up and convince others to buy a coin that’s about to ‘moon’.
Mooning first occurred to Bitcoin in 2017 when its price breached the US$20,000 mark. In the first quarter of 2019, Bitcoin’s price went to the moon again, and now in 2020, the chart is showing telltale signs of a bullish run.
What causes Bitcoin prices to keep going up? How does it happen?
To know the reason behind this phenomenon, we have to learn what causes Bitcoin's price to rise in the first place.
Typically, the main reason behind an upward trend is due to many people buying and storing Bitcoin. Unlike traditional markets, the movement of the crypto market highly depends on the volume of coins out there.
If a significant volume of Bitcoin is bought, the price appreciates. If a large volume of coins is sold, the price depreciates. So if there’s a consistent buying of huge volumes of Bitcoin happening in the market, it’s inevitable that the chart will climb higher every day. The more mainstream Bitcoin becomes, the more people will buy and participate in the market. That is always considered a positive phenomenon for cryptocurrencies.
However, Bitcoin’s dependability on buyers also has a negative effect. This means that if more people are selling Bitcoin rather than buying them, then the price will drop as well. The crypto market’s volatility is often judged as the weakest point of the industry, which is why people are always on the lookout for other coins that are about to moon.
When has Bitcoin ‘mooned’ before?
Bitcoin mooning in 2011 and 2013
At the beginning of 2011, Bitcoin was worth about $1. By June 2011, its price had surged to $32. The second big price increase happened in 2013, when Bitcoin’s price rose from about $130 in October to over $1,100 by December.
Major news outlets began talking about Bitcoin more frequently, discussing its potential as an investment and a new form of currency. Stories about early adopters becoming millionaires made the topic interesting for mainstream publications.
More businesses like WordPress and Baidu started accepting Bitcoin.
Bitcoin mooning in 2017
Bitcoin mooned again in December 2017 when it climbed to nearly US$20,000 - the highest it has ever been. This was also the highest price a crypto coin has ever reached. In the following year, Bitcoin’s price slowly climbed down. By December, it dropped as low as US$4,000, which made 2018 known as the year of the cryptocurrency crash.
Following this crash, however, was Bitcoin’s second mooning in 2019. When the year started, Bitcoin wasn’t looking good as it dipped to its lowest US$3,000. But in just a few months, the community was abuzz with a bullish sentiment after the coin’s price continuously climbed.
Bitcoin mooning in 2019
By the third quarter of 2019, Bitcoin’s price showed positive signs of a bullish run. From US$3,000 in February, it steadily rose to US$12,000 in July. The reason behind this upward trend proved to be institutional investors dipping their hands in the crypto market. During the height of the pandemic, Bitcoin's price surged from around $7,000 in early 2020 to an all-time high of nearly $64,000 in April 2021.
Institutional investors consist of wealthy family offices that compose of high net worth individuals. Their sizable investments jumpstarted Bitcoin’s second mooning that prevented Bitcoin’s downward trend in the first months of the year to continue.
In the third quarter of 2019, Bitcoin rose above the US$11,000 mark. Another factor that contributed to Bitcoin’s second mooning is Facebook’s announcement of their own digital coin, Libra. This prompted mainstream interest in Bitcoin and other cryptocurrencies. With Facebook’s wide reach to billions of users, more people learned about the crypto market which led to more investors buying their first Bitcoin.
Positive investor sentiment also played an important part in influencing a lot of people into buying Bitcoin. It drives public interest and creates a strong momentum that contributes to the appreciation of Bitcoin’s price.
Bitcoin mooning 2020-2021: Covid times
By the end of the year 2020 first quarter, Bitcoin dipped alongside traditional markets due to the coronavirus situation. In March 2020, it went as low as US$4,000, which was then dubbed as the ‘Black Thursday’ event.
Fortunately, this has been Bitcoin’s lowest price since the year started. After the Black Thursday event, Bitcoin’s price started rising again. This was largely attributed to the price appreciation that often happens before bitcoin halving. Bitcoin’s block reward was scheduled to be halved in May 2020.
Bitcoin halving is an auspicious event meant to reduce inflation and cause a positive long-term effect on Bitcoin’s price. Due to the halving craze, more people were buying Bitcoin, which in turn, positively affected the coin’s price.
(1) By reducing the number of new coins being created, which keeps the value of the cryptocurrency (already in circulation) high.
(2) Cementing the coin as a strong investment for anyone who is already holding it.
(3) Resulting in the market never being saturated and the coin staying valuable.
Satoshi Nakamoto (Bitcoin creator superhero alias) included in the currency protocol that,
For every 210,000th block added to the blockchain, the mining incentive reduces, ensuring that the market will never be flooded.
Rewards for miners will continue to be halved every four years until all 21,000,000 BTC have been mined. Fortunately for us, this won’t happen for at least another hundred years.
The effect of the last two halving events prior to 2020:
Rewards for miners will continue to be halved every four years until all 21,000,000 BTC have been mined.
Fortunately for miners, this won’t happen until the next hundred or so years, specifically in the year 2140 when 0 BTC is left to be mined.
During its early years, the initial reward for miners was 50 BTC. In 2012, the first halving event happened and the reward for the 210,001th block was reduced to 25 BTC.
Below you’ll see the table for every halving event that has happened and will happen in the future:
Bitcoin continued rising after the halving happened. By the third quarter, its price breached the US$10,000 mark and even went as high as US$12,000 in August 2020. Another factor that significantly impacted the price were the economic policies of that time. To prevent economic collapse, governments started printing more money and lowered interest rates.
This caused serious concerns that fiat money (dollars, euros, etc.) would lose value because of inflation and investors started looking for other places to put their money to keep it safe, with even large companies like MicroStrategy and Tesla buying Bitcoin as an investment.
Global services like PayPal started letting people buy and use Bitcoin, making it easier to invest in it. All of this continued to push the Bitcoin price up.
During the pandemic, Bitcoin's price went up from around $4,000 in 2020 to an all-time high of nearly $64,000 in April 2021. And it kept going up after that. By November 2021, Bitcoin was worth about $69,000.
Another price record in 2024
A report by Bloomberg published in January 2024 predicted that Bitcoin could surpass $100,000 by the end of 2024. This report was widely shared and discussed, leading to increased buying activity and a 15% rise in Bitcoin’s price over the month. In March 2024, Elon Musk tweeted, "Bitcoin is the future of money". This alone saw Bitcoin's price jump by 10% within 24 hours. #BitcoinToTheMoon became widely used on social media platforms in early 2024. On X alone the hashtag was used in thousands of posts daily. After the April 2024 halving, Bitcoin's price increased again reaching around $74,600 one month after and continuing to rise to about $83,150 by July 2024.
In 2024, the U.S. government approved Bitcoin investment products called ETFs (Exchange-Traded Funds). These products made it easier for big investors to buy Bitcoin legally and safely, which increased trust in Bitcoin.
The EU also made new rules about Bitcoin that made it clearer how businesses and investors should use it. These rules helped reduce worries about sudden changes in the law that could affect Bitcoin investments.
Will Bitcoin price keep going up in 2025 and beyond?
Mike McGlone (Bloomberg Intelligence) predicts Bitcoin will hit $100,000 by the end of 2025, with a long-term outlook suggesting prices will increase even more.
More and more financial institutions and corporations are investing in Bitcoin and this trend is expected to continue, making it likely that the price will increase. However, different financial publications and analysts have different opinions on Bitcoin’s future, from strong support to significant skepticism.
Some experts believe that Bitcoin’s price will keep going up because of increasing adoption, technological improvements, and its status as digital gold. Others warn that Bitcoin’s price might not keep rising, citing potential regulatory crackdowns, competition, and market volatility.
Words by: Leann Padilla
