Sharp Rise in Cryptocurrency Trading Could Send BTC into the Stratosphere
Cryptocurrency was born of the economic uncertainty following the global economic recession. Traders and investors no longer had confidence in central banks to stabilize the world economy, and they sought out an alternative. Bitcoin came into being in 2009 – a digital currency created by mathematical algorithms. It is not dependent on commodities like gold, or regulations of governments, and monetary authorities. Since BTC is mined by powerful software and hardware, it is vastly different to fiat currency which is produced by the minds of central banks. However, it is incredibly volatile and not backed by anything tangible. The last time BTC set a record price was in November 2013. Now, the price per BTC in USD is rising once again as the broader market (e-commerce, person-to-person transfers, regulatory agencies) begins to accept Bitcoin and other cryptocurrencies as de facto forms of monetary transfer. This begs the question: will BTC be the dominant cryptocurrency moving into the future? Many analysts and currency traders are not so convinced. There is often reference made to early technology leaders ultimately becoming laggards when it comes to innovation and leadership.
Bitcoin Hits Impressive Price Levels
Additionally, the price of BTC may be impacted by regulation. Governments are dragging their heels on providing the necessary framework and infrastructure for regulating cryptocurrency like BTC. Governments tend to eschew currencies with limited production. Recall that BTC production is limited to 21 million coins, after which time no further BTC will be available. That supply and demand will ultimately play a big part in the pricing of Bitcoin. It is already clear that more merchants and mainstream channels are adopting Bitcoin as an accepted form of payment transfer. The greater this adoption becomes, the higher the price of BTC. Recall that price is dependent on demand and supply. Since supply is limited, and there is burgeoning demand, this market is set to increase sharply in time to come.
BTC Price Surges 56% in One Month
When it was released in 2009, BTC was worth approximately $0.0001. Fast-forward to June 2011 and 1 BTC was worth $15. By June 2014 1 BTC was worth $600. Today, 1 BTC is worth $2803.92. Traders in search of rapid profits with BTC are advised to be cautious. This highly volatile currency can rise or fall dramatically. On June 12, 2017, the price of 1 BTC decreased by $300 in an hour before rebounding. It broke the critical $3,000 handle, but it remains as volatile as ever. Around 10 AM UTC on June 12, BTC plunged from $2,980-$2,650 within an hour. A rebound took place soon thereafter. Part of the reason for the selloff was a closure of a huge position on OKCoin – a rival cryptocurrency. Over the past 30 days, BTC has surged by over $1,000 per unit, meaning that an investor with $100,000 invested in the cryptocurrency would have made $55,500 in profit in 30 days. Over the past 6 months, the price of a single BTC has increased by 300%. It briefly rose above $3,000 per unit in May, but subsequently retraced towards $2,245. It is common for BTC to fluctuate up to $300 per day, making it a highly volatile trading option. As more industry heavyweights embrace blockchain technology, it becomes more acceptable in financial markets. Notable chief executive offices such as Abigail Johnson of Fidelity recently indicated that she’s a big fan of Bitcoin. The cryptocurrency now has a widespread appeal and usage throughout the world, and there are no middlemen to extract fees or commissions along the way.
Recently, one of the leading analysts at Saxo Bank, Miss Van Peterson stated that she is expecting Bitcoin to hit $100,000 within 10 years.