The end of 2017 saw Bitcoin peak at its highest price yet.
However, this third week of 2018 has been hard on cryptocurrencies, and it has been particularly hard on Bitcoin. In fact, since January 1st, Bitcoin has been performing poorly on several different markets around the world
A Bad Start to 2018
The ups and downs of Bitcoin are starting to become a trend. In fact, just this year, Bitcoin has dropped from $17,886 to its current price of less than $10,000.
Earlier this week, on Tuesday, Bitcoin lost about $1,300 in less than two hours. It started the session at a price of $13,930, peaked at $14,445 and then dropped suddenly to just under a meager $11,500. This is likely due to the recent instability on the Asian markets.
Also, there are several governments and public authorities around the world that are threatening to regulate the markets. There are many out there who believe that the drop in Bitcoin’s price is due to the fear of governments stepping in to regulate the markets.
This fear and anxiety is beginning to spread, but is it justified?
Let’s take a step back and analyze the evolution of Bitcoin over the last three years.
A Better Look
As can be seen in these three graphs, there seems to be a pattern in Bitcoin’s evolution.
In January 2016, Bitcoin started out at about $430 but had dropped to $358.77 by February. After that, it started climbing. The announcement of Brexit in June also contributed to Bitcoin’s increase in price, causing it to gain about 9% while other financial assets took a plunge. By the end of the year, a single unit of Bitcoin was worth a staggering $968.23.
Then, again in 2017, we saw the same patterns unfold. As of January 1st, 2017, Bitcoin was trading at about $1,000. Then, in between January and February, we saw it drop as low as $775.98 before continuing to climb as high as $20,000 in December. After its peak, we then saw it stabilize to around $17,000.
Then, this month, Bitcoin has lost about $6,000 in value and is trading at around $11,000.
A Brighter Future for Bitcoin
So, the one thing that we can infer from these patterns is that Bitcoin tends to lose a little bit of value at the beginning of the year, only to finish the year off by soaring to new heights.
Therefore, shouldn’t it be logical to expect the same thing to happen this year?
There are some experts who believe that this will be the case once again. Max Keizer, recently, made a Twitter posts predicting that this pattern will continue, at least until Bitcoin reaches a value of about $100,000.
In our opinion, if you are currently holding Bitcoin, it’s still a little too early to panic and start selling.
All three, Wences Casares, the CEO of Xapo, Peter Smith, the CEO of Blockchain and Jeremy Liew, owner of Snapchat, believe that a single BTC could reach values in the hundreds of thousands of dollars, maybe even millions. However, that doesn’t mean that it will be a straight path to the top.
Either way, 2018 will be an interesting year for Bitcoin and cryptocurrencies in general. Therefore, the only thing we can do is hold on and hope for a brighter future.