September 2017 has been a very interesting month for Bitcoin. The cryptocurrency experienced a significant drop in value which had a negative impact on the industry as a whole. In this article we’re going to look at the reasons as to why Bitcoin’s value took a knock and what the future holds for it.
ViaBTC published a piece recently that the Chinese bitcoin exchange halted its domestic trading service. As a result the ‘shock’ hit the cryptocurrency market like a tsunami causing Bitcoin to lose more than a fifth of its market cap within 24 hours, and within 48 hours it dropped by more than a $1,000. Those who use Bitcoin to play at online casinos are now wondering will the market return to the ”green zone” again?
A Temporary Glitch
At the time of writing Bitcoin was trading at $4,000 per coin, so it’s safe to assume that the market is busy stabilizing again despite the latest upheaval in China. A few weeks ago Bitcoin traded at an impressive $5,000, an increase of 500% since December 2019. To say that it’s impressive is an understatement plus it came out tops after the hard-fork.
The biggest problem that exists within the Bitcoin community is that some of the main players are slightly skeptic about it now. Many Bitcoin exchanges closed down shop in China while domestic exchanges halted their services prompting companies to sell off their bitcoins.
U.S Dollar Remains a Contender
”The strength of the U.S dollar in the international market complicates matters slightly for Bitcoin”.
Due to the bullish nature of Bitcoin which focuses on the SegWit activation, the U.S dollar’s strength could have a negative impact on the digital currency. Many international institutions are showing an interest in it while countries such as Japan regulated it further strengthening its position as a heavyweight.
Will Bitcoin Hit the $5,000 Mark Again?
Some experts are of the opinion that it won’t; the United States’ Federal government’s anti-Bitcoin policy strengthened the U.S dollar which could curtail its exponential growth, at least for now. It’s unlikely that it will hit $5,000 again within the foreseeable future.
A minor relief rally could be on the way, technical analysis points out that the current sell-off phase is exaggerated. However, even if the Fibonacci method is used it’s still difficult to gauge where the rally point will occur. To put it blunt, the best guess is that Bitcoin will continue to trade between $3,500 and $3,900. Worst case scenario is that Bitcoin drops all the way right down to $2,350, assuming that the China continues its bullish behaviour on the domestic trading of Bitcoin.
Where to From Now?
It’s evident that the ‘September Plunge’ is still not over yet. The Chinese ban on ICOs and the strong U.S dollar hit Ehtereum hard which impacted the other cryptocurrencies.
The complexities of the market is still difficult to pin point; it’s clear as daylight that China remains the base for the cryptocurrency-good or bad. Digital currencies are tied directly to the dealings going on in Beijing.
In summary. 2017 is the year of Bitcoin because it paved the way for other mainstream digital currencies. Coinmarketcap.com increase in popularity is testament to bitcoin’s incredible popularity; one moment it’s ranked 1,049th and a month later is 379th. Does it coincide with the cryptocurrency boom? We think so. The majority of the site’s visitors comes from the USA (22%) while the rest comes from the UK, Germany, Japan and India.