[BTC/USD] Price Analysis: $10,000 for Bitcoin in 2019 — Is It possible? Of Course!
[BTC/USD] Price Analysis: $10,000 for Bitcoin in 2019 — Is It possible? Of Course!

A Year on From Bitcoin’s All Time High: What Has Gone On?

  • Darryn Pollock
    🤷 Opinions

    A year to the day, the cryptocurrency market hit its all time high as Bitcoin topped $20,000, but today, things are in a very different place

A Year on From Bitcoin’s All Time High: What Has Gone On?
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On December 17, 2017, the price of the major cryptocurrency had rocketed to close on $20,000 after a stellar month which saw the price of Bitcoin break through the $1,000 barrier with consummate ease. The hype and excitement around Bitcoin and cryptocurrencies was at its peak, but it peaked out at that mythical mark.

A lot has happened in the year since then: Bitcoin currently sits closer to $3,000, a price last seen in August of 2017. There have been many factors that have shaped this wild, year-long ride, and these factors have also set up the cryptocurrency market for an uncertain future.

From a speculative bubble to regulatory pressure, the manner in which Bitcoin entered the mainstream has led to it having a volatile ride through the markets. Its own makeup has also seen it expand and encompass many different facets of life, with blockchain technology a potential global disruptor.

Despite being over 10 years old, blockchain and Bitcoin have only really started making an impact in the grander scheme of global life in the past 18 months or so, and because of this, its future path has a long way to be written and shaped.

The speculative bubble

A general look over Bitcoin, year to date, paints an obviously negative picture, as the all time high of $20,000 was reached exactly a year ago today. It has been all downhill from there, with Bitcoin shedding over $7,000 in value from December 17 to the end of the year as it settled on $13,000 as its ending figure.

It has continued to slide downward as a bigger and more ferocious bear market took over. In February, the price dropped to $7,000 quite dramatically before there was a short rebound that took Bitcoin up to $11,500 again. But this was short lived as the decline continued.

What followed was some gentle undulations between $7,000 and $9,000 from April until July before a period of uncommon stabilisation in the $6,000 range took hold from September to November.

The movement of Bitcoin to it's all time high was always because of speculative investors who were trying to get on the bandwagon, and because of this, it is unsurprising that the Bitcoin price ended in a clear bubble.

Putting it in line

Part of the reason that the speculators’ bubble grew so much is because Bitcoin was a new, inclusive, and totally unregulated form of investment. Anyone with a smartphone could get in on it, and there was nothing to stop it or slow it — as a decentralised form of currency.

This drew in the investors, which drew in mainstream interest and more and more money, and eventually, it drew in the regulators who were forced to act to put Bitcoin in line. Businesses operating around the cryptocurrency were totally unregulated, and it was leading to damaging occurrences and hacks.

Because of this, places like China, and even Korea and Japan, took heavy steps in controlling cryptocurrency exchanges. More so, the likes of the SEC also stepped in and dealt heavy blows to fundraising vehicles like ICOs.

This regulator pressure stalled the growth of these blockchain businesses and ICOs and caused the speculators to start checking their actions and getting a bit fearful with their money. Any bad news that came from regulators scared off a lot of investors, and there were numerous sell-offs in this past year that spiraled into a bear market.

What does the future hold?

Based on the speculative investment of the blockchain and cryptocurrency space, many are proclaiming that Bitcoin and the like are dying and will soon be dead. However, its future is far more complex than that.

It has often been equated with the Dot Com bubble, and this is probably apt as like the Dot Com, it had a valuable underlying technology that operated almost separate from the hype.

The same can be said of Bitcoin with its blockchain technology, which is garnering more and more support and investment — steady investment — despite the cryptocurrency downturn. It is likely that the cryptocurrency market can rebound, but it will be predicated on blockchain gaining more adoption, and solid investments advancing the technology without the greed or speculative interest.

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Ethereum Price Predicted to Climb in the Long Run as Buterin Explains Need for Higher Coin Values

  • Jack Thomas
    🤷 Opinions

    Vitalik Buterin, the co founder of Ethereum, has come out and said that while the price of a coin is not that important, it is still a good thing for ETH to rise. He made mention of security, and the ecosystem development being better when the price of Ethereum is higher.

Ethereum Price Predicted to Climb in the Long Run as Buterin Explains Need for Higher Coin Values
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Ethereum is in a key phase of its development, having pioneered the smart contract blockchain. It is now in a position to take things further and grow its ecosystem as it looks to, for one, switch its algorithm from proof-of-work to proof-of-stake.

This development of the ecosystem will no doubt have an effect on the price of the Ether token, but more than that, Ethereum’s co-founder Vitalik Buterin has said that a higher Ethereum price is good for the development of the Ethereum ecosystem, as well as adds a higher level of security.

Essentially, it is a double-edged sword as the price of Ethereum is expected to rise when any cryptocurrency project is doing well, but the long term price prediction is then expected to rise, as Buterin adds it will help improve the project further.

Buterin’s beliefs

Buterin made his comments during an interview for Laura Shin’s crypto-focused “Unchained”.

In response to Shin’s question as to whether protocol designers and project leaders should be focusing on the question of a cryptocurrency’s price, Buterin spoke of how the Ethereum project had explicitly downplayed the importance of the asset’s value earlier on in Ethereum’s history.

“In part, it was counter-signaling to distinguish ourselves from other crypto projects that do pumping and lambo-ing way too much. But it was also about minimizing legal risk by basically trying to make the project seem more distant from something that would be covered by financial regulation.”

However, he has now gone on to explain that in today’s context, the price does in fact have a part to play.

“I can tell you what things are clearly important about why the price being higher rather than lower is good. One of them is obviously security. If the price is zero, then the network can’t be secure. That’s true in proof-of-work and proof-of-stake,” he added.

Long-term price prediction

With this being said, it makes sense that the price of Ethereum is thus being aimed at long-term growth. The project itself is working on improving its own worth and value as a blockchain project, and in that, the price of Ether should also naturally rise.

And, with a focus being on the importance of a higher price adding to the value of a blockchain project, this could even compound the growth of Ether's price in the long run.

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