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2011 Dollar parity, boom and bust

Bitcoin reached parity with the US dollar, shot up to roughly $30 by June and then lost more than 90 percent of that value within months. It was the first full boom-and-bust cycle, and it also brought the first altcoins and darknet markets.

Year-end price (approx.)

~$5

Block reward

50 BTC

Mid-year peak

~$30

What happened

1. Feb 9

   Bitcoin reaches $1 on Mt. Gox for the first time.

2. Feb

   The Silk Road marketplace launches, giving Bitcoin its first large and controversial real-world use.

3. Apr

   Satoshi sends the last known private messages, saying they have moved on to other things.

4. Jun

   The price peaks near $30, then a security breach at Mt. Gox sends the exchange price crashing and shakes confidence.

5. Oct 7

   Litecoin launches, one of the first Bitcoin-inspired alternative coins.

Why it mattered

The 2011 crash set a pattern that has repeated ever since: sharp rallies, deep drawdowns, and the lesson that exchanges are a weak point.

Price by month

Bitcoin price on the first day of each month, in US dollars, with the change from the previous month.

• Jan$0.30+30%
• Feb$0.71+137%
• Mar$0.92+30%
• Apr$0.77−16%
• May$3.03+294%
• Jun$9.57+216%
• Jul$15.40+61%
• Aug$13.09−15%
• Sep$8.30−37%
• Oct$5.03−39%
• Nov$3.15−37%
• Dec$3.06−3%

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