2013 was a breakout year for Bitcoin in terms of price and public awareness, but also one marked by extreme volatility and regulatory attention. The price surged dramatically, reaching over $260 in April before crashing to around $50, and then embarking on an even more astonishing rally to over $1,100 by December.

This price action was fueled by increased media hype, growing adoption in various markets (including Cyprus, amidst its banking crisis), and rising interest from investors.

However, the year also saw significant challenges, including the seizure of the Silk Road marketplace by the FBI in October, where Bitcoin was a primary means of exchange.

China also began to express concerns, with the People’s Bank of China prohibiting financial institutions from handling Bitcoin transactions.

A technical glitch in March also caused a temporary fork in the blockchain, which was quickly resolved by developers.

Bitcoin Milestones in 2013

• March: A technical issue with a Bitcoin software update (v0.8) caused a temporary blockchain fork, which was resolved by community and developer coordination. The price saw a significant rally.
• April: Bitcoin’s price peaked at over $260 before crashing.
• October: The FBI shut down the Silk Road marketplace and seized its bitcoins, bringing negative attention but also highlighting Bitcoin’s use.
• November/December: Bitcoin’s price surged to over $1,100.
• December: The People’s Bank of China prohibited Chinese financial institutions from using Bitcoin, causing a significant price drop.