Unless you have been living under a rock, or don’t particularly pay attention to the technological and financial industries, you likely know about Bitcoin. The cryptocurrency market exploded in the last year or so, largely on the back of Bitcoin.
Bitcoin was the first cryptocurrency to ever be developed, created and released, and is the most popular cryptocurrency on the planet. Its market cap is nearly three times the second-place coin, Ethereum. However, it hasn’t always been peaches and cream for Bitcoin. After a few rough months, it is once again on the rise and has investors and supporters excited.
This article will look a little bit at the life cycle of Bitcoin over the last year, and why it is currently experiencing a BTC to USD resurgence.
A Huge 2017
Bitcoin has been around since its creation in 2009, but it wasn’t until 2017 when it became a household name and a true force in the financial world. Before 2017, Bitcoin had never been worth more than $800. However, by the end of the year, a single Bitcoin had cost nearly $14,000. That is a massive increase, and thousands of Bitcoin holders have made a fortune throughout 2017.
So what led to this massive increase in Bitcoin’s value in 2017? Well, this was largely due to the increased popularity and publicity of virtual currency. Cryptocurrency was being talked about by seemingly every news outlet and publication out there, and as Bitcoin is the biggest of them all, it got a massive boost in the popularity. Also, as more and more places began to accept Bitcoin, it became much more valuable in the eyes of many.
Bitcoin was on the rise throughout 2017, but the last month or so, it dropped a little bit, and this drop continued into 2018.
A Rough Start to 2018
Unfortunately, just as quickly as Bitcoin rose, it began to fall. By early February, the value of Bitcoin had been cut in half. On February 6th, Bitcoin was under $7,500, which is an absolutely massive drop from where it was only a few weeks prior.
While this would have been a small roadblock for the industry, it wasn’t the end. The price of Bitcoin continued to drop, even going under $6,000, which is the lowest it had been since early November 2017. During this time, many investors were panicking, while others were aware of the up and down nature of cryptocurrency, and thus expected a drop at some point.
So what caused this large drop in value for Bitcoin, only a few months after it had been higher than ever? Well, there are a few things that can be to blame. Firstly, the “viralness” of the cryptocurrency as a whole began to dwindle, which severely hurt the price as many people simply didn’t care anymore. The herd mentality was a huge part of the rise of Bitcoin, so it is only fitting that it is a large part of the decrease in its price as well.
Another thing that likely hurt the price was the threat of regulations by different groups and countries across the world. Many of those who invest in crypto aren’t fans of regulation, so the threat of it definitely might have scared some investors away, and tempered expectations about where Bitcoin could ultimately go.
A Mid-2018 Resurgence
While it hasn’t been the rapid ascension that it experienced in late 2017, the price of Bitcoin has slowly been on the rise during the middle of 2018. It went from hovering around $6,000 or so, to reach up over $8,000, which is bringing about a lot of excitement and faith among investors and supporters. The month of July as a whole was full of consistent growth, and this showed no signs of stopping anytime soon. In fact, many believed that this increase would have Bitcoin well on its way back to similar numbers that it was able to reach last year. But the investors’ hopes are not destined to be realized, at least for the time being. As of August 10, the price of Bitcoin is set at $6,400, although with the signs of recovery.
So how did Bitcoin come back and start to climb back up again? Well, one of the largest catalysts behind this was the news that many giants in the world of finance and technology are looking to get into the world of cryptocurrency. Also, good news surrounding regulations also has contributed to this slight pattern of growth. There is also expected to be an approval surrounding Bitcoin ETFs (exchange-traded funds), which could make investing in the market a little bit simpler and more efficient.
Also, there is a good chance that the price increased due to the fact that more people were investing in it, driving the price up. See, while many people sell when an asset’s price gets low, others look to purchase it at a discount. So with the price of Bitcoin the lowest it was in months, many used that as a reason to invest.
In conclusion, it is tough to know what the future will hold for Bitcoin or any other cryptocurrency for that matter. But with Bitcoin rising, things are looking up. This is a welcomed sign by Bitcoin investors as the currency had been struggling in recent months. While this is no guarantee it will continue to rise, it is a reassuring situation and could mean that upward mode is indeed on.
Of course, before investing in Bitcoin (or any other cryptocurrency or digital asset), you should do a lot of your own independent research. These coins are extremely volatile, and in all honesty, it is very hard to predict their rise and fall. This article is by no means trying to get you to invest in Bitcoin, we are simply speaking about the history of the coin’s price and why it might be on the rise again.