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How Bitcoin Skyrocketed in 2017-Detailed Insights

Bitcoin- the most notorious digital currency to date, had started off the year 2017 at a valuation fluctuating between $800 and $1,150. However Bitcoin blew everyone’s mind when its price exploded and maintained a steady hike all the way to $17,900 towards the end of 2017, and a whopping price of roughly $20,000 in the early days of December. Now the valuation of Bitcoin has deflated back to $8,500 and some industry experts believe it to even go down even further and correct its price at $4,000. This major rise has not only created a buzz amongst the get-rich-quick scheming amateurs and traders, it has even grabbed the attention of Wall Street. Naysayers declared it as a fraud and a toy for the criminals.

As we entered the new year, it seems like digital currencies are maturing and will continue to mature as an acknowledged asset class on wall street. Bitcoin futures are trading on major markets and allowing investors to bet on the coin even without holding it. If we talk about the price of Bitcoin in 2018, then many people see it even going higher than $20,000 in 2018. The next question is, what is causing this exponential growth of the currency?

Well, let’s take a look at the journey of Bitcoin and and analyze factors that contributed to how it skyrocketed in 2017.We Compiled an Infographic on the most important events from the start followed with some other major breakthroughs 🙂

How Bitcoin Skyrocketed in 2017-Detailed Insights

The PBOC Impact

January started with Bitcoin fireworks. This month had seen the defining regulatory moments of 2017: an initial move by the People’s Bank of China, the Central Bank of the country, to tighten China’s oversight then give the upper-hand to bitcoin exchanges.

Some observers were fearing a market death blow but the warnings of Chinese officials was nothing but paranoia and Government FUD. However, as a result of enforcing new trading fees by the “Big Three Exchanges” of China that are OKCoin, Huobi, and BTCC, things lead to the drop in the trading volume. Later, those exchanges halted withdrawals following new edicts from the PBoC, ultimately closing fiat trading this fall following restrictions from Chinese regulators.

The NO heard round the world

Back in 2013, the infamous Investors Tyler Winklevoss and Cameron, after successfully suing Mark Zuckerberg for intellectual property violations and investing a big chunk in bitcoin, filed for launching a Bitcoin exchange-traded fund. They set the stage for a multi-year journey that led all the way to March 2017, ultimately receiving rejections by the SEC (Securities and Exchange Commision).  

Since the SEC decided to review the decision (still pending process), at that time the market reacted poorly, perhaps due to the fact that people were betting that U.S regulator would shoot down the proposed ETF, however they eventually approved it. That same day the Market dropped by 30% that day, ultimately recovering above the $1,000. Within the days of the ruling, bitcoin price was back to its pre ETF point. At the time, despite the reluctance expressed by SEC, with the particular focus on funds tied to cryptocurrency futures, a number of firms still filed to create Bitcoin ETFs. Today, the Winklevosses have amassed a substantial net worth of around $1.1 billion US dollars from their bitcoin investment.

The Summer of Bulls

“A new all-time high for bitcoin”. This phrase defined the period from May to September 2017. The price of the cryptocurrency, with unbelievable ease, pushed past each successive mile stone, including one on May 1st that saw bitcoin break a record price set on a now-defunct and infamous exchange.

That summer has seen significant activity around initial coin offerings, shown by data Coin Desk’s ICO Tracker. It lead one observer to dub the term ” The Summer Of Crypto Love”.

In May, the price of bitcoin climbed above $2,000 for the very first time and just weeks later it surpassed $3,000. At the same time it had a drop of $3,000 within just one hour, a day after the $3,000 line was first crossed, however those price milestones were often accompanied by subsequent turbulence.

Entry of major wall street analysts to the bitcoin price watching-game was one of the most noteworthy developments.

For the first time, the price of bitcoin exceeded $5,000 by the first week of September. The coming days would see a reversal of the late summer gains, with the falling price of cryptocurrency below $3,400 on 14 September and down past $3,000 on the next day.

Past $10,000 and beyond

By mid-October, once again the price of bitcoin was above $5,000 and the dejection of September had been forgotten.

The price of bitcoin was largely cheered by a hopeful sentiment which would set the stage for an eye-popping November and December, despite the pending closure of the “Big Three of China” exchanges and a global crackdown on unregulated ICOs beginning to take shape.

Yet for all the forks and regulatory rumbling away from the bitcoin network, the price of cryptocurrencies as a whole continued its upward trajectory, culminating with the CoinDesk Bitcoin price index of an all-time high at $19.783.21 on December 17th.

But after many of the all-time-highs last year and the encounter of $20,000, just a few days later a 30% drop followed which shaved billions of dollars off the total cryptocurrency market capitalization. This sent bitcoin prices tumbling below $11,000, and it was one of the greatest market corrections seen to date.

The price of bitcoin would recover over the coming days, climbing back beyond $16,000 and even higher on the other cryptocurrency exchanges across the world. As shown in the most recent price data and graphs, bitcoin value began to fall and dropped to the mid $13,000 on 28 December after opening the day above $15,000. With the new year, an even heavier drop was endured by bitcoin investors all around the world, putting its value at $8,500 as of the second week of February. We can all but hope that the price predictions of the optimistic bitcoin holders turn out to be true. All we can do for now is HODL (Hold on for dear life: a term coined by the internet community, especially reddit).

Written by Sheikh Mohammad Bilal

Hey, My name is Sheikh Mohammad Bilal, I am an Internet Entrepreneur & the Founder of CryptoNews, I started my Cryptofolio about 7 months ago and was so amazed, Ultimately having a thought of sharing our views with the people of UAE and educate them more about Cryptocurrencies in UAE, I am an award winning blogger and proud owner of www.expressblogger.com

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