The Bitcoin digital cryptocurrency has continued to make headlines this past year and the value of Bitcoin has seen some unprecedented highs during the last 24 months. Bitcoin value skyrocketed by nearly 1,600 percent during the last two years and by more than 600 percent during the last 12 months.
Financial experts have warned that the exponential rise in Bitcoin’s value is bound to come crashing down sooner or later. The markets saw Bitcoin values fluctuate significantly during the month of September as it hit its highest point on September 2 to reach $5,013 before plunging to below $3,000 by September 16. The cryptocurrency has stabilized to some extent during the last two weeks and has reached a month’s high on October 9 when it touched $4,867.
The market currently is split in two when it comes to Bitcoin and its performance. The value and reputation of Bitcoin took a hit after China decided to crackdown on the cryptocurrency and ban (Initial Coin Offering) ICO’s and shut down Bitcoin Exchanges in the country. China was an extremely important hub in Asia for Bitcoin Exchanges and the value of the currency dipped after China made the announcement. South Korea also announced that it would follow in China’s footsteps and crackdown on ICOs.
However Bitcoin also received a boost as Japan did the opposite and legalized Bitcoin. The financial watchdog in the country has approved eleven companies as legalized cryptocurrency exchanges while major retail operators have announced that they will start accepting Bitcoin payments across their outlets.
In a statement, Aurélien Menant, founder and CEO of Gatecoin said
Bitcoin’s rally is continuing off the back of a more certain regulatory environment across the world, most notably in Japan. This has encouraged more institutional funds to enter the market and we are finally seeing the effect of this additional liquidity.
Bitcoin has grown in popularity because it uses a blockchain technology that provides a lot more security and confidentiality to financial transactions. Goldman Sachs is in talks to launch an innovative trading platform that will focus on cryptocurrencies like Bitcoin and Ethereum. While the value of Bitcoin has continued to increase exponentially, cryptocurrencies like Ethereum have taken a hit. The value of Ethereum has dropped by 4 percent during the last month and is now at $296.
Menant says that Bitcoin could go up to $6,000 by the end of 2017 but the market must be prepared for short term volatility.