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Bitcoin, the popular cryptocurrency recently underwent a price correction, losing as much as $400 overnight. The sudden drop, following a steady, rapid increase in its price to record levels was considered as the end of Bitcoin’s bull run for a while. However, analysts believe that the development is just a minor setback which will be overcome in no time.
Few investors believe that the cryptocurrency is just getting started and Bitcoin price is expected to rise again, hitting the $4000 mark by the end of this year. A leading financial news outlet has reported an analysis made by a seasoned investor, Daniel Masters — the Chairman of XBT Provider, a company that offers a “Bitcoin tracker” that can be exchanged and traded on Stockholm’s Nasdaq exchange.
Masters believes that the recent Bitcoin-related developments happening around the world are going to be the important driving factor in putting the digital currency’s price at $4000 by the end of 2017. At the same time, the rise in Bitcoin price will be accompanied by increased stability, thanks to the cryptocurrency’s growing proliferation and volumes.
In the article, Masters was quoted saying,
“What we’ve seen at XBT Provider is an increase in coverage and an increase in penetration into both the retail and institutional market. We’re now being covered on Nasdaq OMX by 27 different broker-dealers, and that is a stark increase from what we saw a year or two ago.”
Some of the drivers of Bitcoin price listed on the article includes the recent legalization of cryptocurrency by Japan in April, the US Securities and Exchange Commission’s review of Bitcoin ETF approval and more. With the Chinese exchanges removing withdrawal restrictions and possible regulations to be introduced by Russia, India, South Korea and other countries, demand for Bitcoin is expected to continue, supporting the upcoming price rise.
There are currently few concerns regarding the scalability issues faced by the Bitcoin network, which may put negative pressure on the cryptocurrency growth. Whether the community will be able to address the issue in time, without affecting the next rally is something only time will tell.
Ref: CNBC | Image: NewsBTC
