Financial Researcher: Bitcoin Entered 2017 Below $1,000, Now it’s Over $6,000




As Charlie bilello, the Director of Research at Pension Partners noted, the price of bitcoin entered 2017 below the $1,000 mark. 10 months in, the price of bitcoin is likely to close the year at over $7,000, recording at least a six-fold increase in value for investors.

Mid to Long-Term Performance of Bitcoin: Rarely Records Loss

In the mid to long-term, bitcoin rarely records any losses and such trend has been evident in the price chart of bitcoin over the past three years. Earlier this year, the bitcoin price was around $930. Although it breached the $1,000 mark in February, the rejection of the Winklevoss twins’ bitcoin ETF proposal led the bitcoin price to decline below $950.

At the time, several analysts suggested that the market could lose faith in the mid-term performance of bitcoin and the price of bitcoin could dip below $700.

But, the price of bitcoin recovered relatively quickly, showing strong resilience towards the SEC’s decision to reject two bitcoin ETFs. Bitcoin price faced another major correction in early September, when the Chinese government imposed a national ban on cryptocurrency trading. Even then, the price of bitcoin began to demonstrate signs of recovery within a month, rising from $3,300 to $6300. That is, a $3,000 increase in price within a two-month period.

In the short-term, the price of bitcoin could be volatile to many factors. In the mid to long-term, as the price chart of bitcoin has demonstrated in the past two years, bitcoin will likely increase at a consistent rate, leading to analysts like Max Keiser establishing a $10,000 mid-term price target for bitcoin.

How Does Bitcoin Price Recover After Every Correction?

Bitcoin is able to sustain its upward momentum in the long-term because it is considered as a robust store of value, safe haven asset, and by many, digital gold. Since early 2016, the traditional financial industry and mainstream media begun to describe bitcoin as a more efficient, portable, and secure version of gold.

As billionaire investor Peter Thiel stated:

“I’m skeptical of most of them (cryptocurrencies), I do think people are a little bit … underestimating bitcoin especially because … it’s like a reserve form of money, it’s like gold, and it’s just a store of value. You don’t need to use it to make payments. If bitcoin ends up being the cyber equivalent of gold it has a great potential left. Bitcoin is mineable like gold, it’s hard to mine, it’s actually harder to mine than gold. And so in that sense it’s more constrained,” said Thiel.

In the long-term, as bitcoin continues to attract investors and traders from the traditional financial market, and penetrates the gold market, the market cap of bitcoin will likely increase at an exponential rate. Several analysts such as Keiser emphasized that the market cap of bitcoin could reach the $2 trillion mark in the next five years.

Published by

Joseph Young

Joseph is a web developer and designer, writer and a passionate musician who loves to travel often. He’s worked as a researcher for a number of venture capital firms and as a freelancer designer for resorts and corporations in Korea and the Philippines. Joseph will be covering new technologies, startups, technical analysis and breaking news in the bitcoin industry.

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