On September 23, 2017, the price of Bitcoin has increased to $3,738 from $3,600, with a recorded daily growth of 4.88%. At the recent peak, the price of Bitcoin passed the $3,800 mark. There were hints of recovery from the greatest price correction.
Less than three days earlier, on September 20, the price of Bitcoin and many of the cryptocurrencies in the global market dropped significantly. Bitcoin’s price fell by $490, from $4,020 to $3,530. In addition to Bitcoin, the price of the other top cryptocurrencies, like Ethereum, also declined by more than 10%.
Optimistic indicators: Bitcoin remains stable around the $3,800 mark
In 2013, with the Chinese government ban of Bitcoin and the trading activities around the cryptocurrency, the price of Bitcoin sank by more than 40%. It was not able to recover for over eight months following that ban. Then, in December 2016 for the first time, the price of Bitcoin overtook the $1,000 mark. When the Chinese government put out a nationwide ban on Bitcoin, Bitcoin’s price wasn’t able to pass the $1,000 mark again until January 2017.
Taking into the account the impact of the Chinese government and its Bitcoin ban has on the price of Bitcoin in 2013, the nationwide Chinese ban on the local Bitcoin exchanges had a significantly less impact on both the state of the global Bitcoin exchange market and the price of Bitcoin.
When the Chinese government requested that the major Bitcoin exchanges and the trading platforms, including Huobi, OKCoin, and BTCC to shut their operations down, the analysts expected that the price of Bitcoin would remain under the $3,000 mark for a time, since the Chinese Bitcoin exchange market was still an important Bitcoin market. However, with the growing number of investors and traders who started to realize that the Chinese market was just accountable for about 10 to 13 percent of the global Bitcoin traders, the international Bitcoin exchange market began to demonstrate a growing demand from investors.
It’s essential to recognize that stability is apparently a far-fetched term for depicting the latest performance of the price of Bitcoin. However, relative to past events, like the 2013 Chinese government ban on Bitcoin, Bitcoin has done quite well. It has shown resilience towards the FUD and regulatory uncertainty in China.
Is the price of Bitcoin able to recover past $4,000 in the coming weeks?
Financial and Bitcoin analysts confirmed that the price of Bitcoin would probably increase in the coming days and weeks. This was taking into account that the weak hands have left the market. Bitcoin analyst, Max Keiser, emphasized that his short-term price target of $6,000, given that the price of Bitcoin has held up and sustained the momentum regardless of the uncertainty regarding the Chinese Bitcoin market, also the country’s local Bitcoin mining industry.
Since 2016, there has been a growing number of traders and investors who have started to seek Bitcoin as a haven asset for avoiding the volatility of the global markets and the weakening of the reserve currencies. With the intensifying conflict between the US and North Korea, it’s likely that additional investors will start to seek out Bitcoin in the coming weeks.