Another day, May 11, 2017, and Bitcoin has climbed another $100. Since late December of 2016, Bitcoin has been increasing in value rapidly. The value increase correlates with higher frequency of trading and increased public adoption. Bitcoin is setting records daily, and seems to be on track for widespread use as more online merchants and real-world locations begin to accept the digital currency.
It’s incredible to think that Bitcoin was worth less than $500 in May of 2016, and has climbed to over $1800 at the time of this publication. With three major ups and downs during that time, Bitcoin has shown strong resilience in rebounding, and appears to be on its strongest run yet. Lets talk about those three previous runs.
As CNBC reported around June 2016, there are three main reasons for the activity in
Bitcoin around that time:
- Problems with Bitfinex, and their eventual shutting down (price drop in early August)
- Uncertainty surrounding Brexit at that time
- The Yuan Effect, and Chinese markets
While Bitfinex, a major Bitcoin exchange in 2016, suffered with server issues and eventually being hacked for over $72M worth of Bitcoin, traders and believers in the digital currency had to contend with the influence of the Chinese Yuan as well as the uncertainty around whether or not a Brexit would happen. These are the three most influential factors in the action we see around June 2016 regarding the value of Bitcoin.
The next hiccup faced by Bitcoin enthusiasts came in January 2017, after briefly rising to near all-time-high prices during its most impressive run since 2013. On January 5th, the average price of a Bitcoin across most trading platforms sharply fell around $200. This specific price drop was speculated to be linked to rumors of increased regulation on the digital currency by the Central Bank of China, and the free fall continued for a full week.
The final hurdle in our incredible story of Bitcoin over the past year is still fresh in the memory of many Bitcoin traders and enthusiasts. After hitting record highs, and even surpassing the price of gold for the first time ever, an unfavorable decision by the SEC regarding the eligibility of a Winklevoss Bitcoin Trust to be traded on the stock exchange put the entire future of Bitcoin at risk. But this is not what caused the rapid loss in value of nearly $300 in just 3 days. The cause of this most recent hurdle comes from within the Bitcoin community itself (along with more rumors of Chinese regulations), as Bitcoin miners and thought-leaders debate over complicated software and tech issues.
At the time of this writing, we have yet to experience the next big roadblock in the blockchain-based digital currency’s journey to widespread adoption, as Bitcoin continues to soar at truly astonishing rates.
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