Introduction
The cryptocurrency market has experienced tremendous growth over the past few years. One of the most popular digital currencies is Bitcoin, which was created in 2009 by an unknown individual or group of people under the pseudonym Satoshi Nakamoto. Bitcoin is a decentralized, digital currency that enables users to transfer funds directly between one another without the need for a third-party intermediary. As of December 2020, there are nearly 18 million bitcoins in circulation with a market cap of over $400 billion.
Historical Analysis of Bitcoin Price in 2017
In 2017, Bitcoin experienced a meteoric rise in its value. On January 1, 2017, its opening price was $998. By the end of the year, its closing price had risen to an all-time high of $14,156. This represented a staggering 1218% increase in its value in just twelve months.
During the year, Bitcoin reached its highest price of $19,783 on December 17th and its lowest price of $752 on July 16th. This marked an impressive 25-fold increase in its value from its lowest point to its highest point.
Exploring the Highs and Lows of Bitcoin Prices in 2017
The reasons for Bitcoin’s highest and lowest prices in 2017 can be attributed to a combination of factors. When it comes to the highest prices of the year, the surge in demand from investors and traders in the cryptocurrency market played a major role. Additionally, news headlines about Bitcoin’s potential as a revolutionary technology may have encouraged more investors to join the fray.
On the other hand, the lowest prices of the year were likely due to the uncertainty surrounding Bitcoin’s long-term prospects. This caused some investors to sell off their holdings, leading to a sharp drop in the price. Additionally, the Chinese government’s crackdown on Bitcoin exchanges may have also contributed to the decline in its value.
How the Bitcoin Market Changed in 2017
Though 2017 saw a significant increase in Bitcoin’s price, the underlying market also underwent a number of changes. Firstly, regulatory changes were made to the cryptocurrency market. For example, Japan officially recognized Bitcoin as a legal payment method, while Russia imposed restrictions on the use of cryptocurrencies.
Secondly, mainstream businesses began to adopt Bitcoin as a payment option. Companies such as Microsoft, Expedia and Subway all started accepting Bitcoin payments during the year. This helped to legitimize the cryptocurrency and give it more credibility among investors.
Finally, the trading volume of Bitcoin increased significantly in 2017. This was likely due to the rising interest in the cryptocurrency from both institutional and retail investors. This increased liquidity in the market, which helped to drive the price up even further.
What Factors Influenced Bitcoin Prices in 2017?
When analyzing Bitcoin’s performance in 2017, it is important to consider the various economic, global and news-related factors that may have influenced its price. On the economic front, Bitcoin benefited from the weakening of the US dollar, which made it a more attractive investment for individuals and institutions looking for a hedge against inflation.
Global events such as the Brexit vote and the election of Donald Trump in the United States also had a significant impact on the cryptocurrency market. The uncertainty surrounding these events led to a spike in demand for Bitcoin, as investors sought out safe havens for their money.
Finally, news headlines about Bitcoin and its potential to revolutionize the financial system also had an effect on its price. Positive news stories drove up the price, while negative stories had the opposite effect.
A Review of Bitcoin’s Performance in 2017
2017 was undoubtedly a remarkable year for Bitcoin. From its opening price of $998 on January 1st to its closing price of $14,156 on December 31st, the price of Bitcoin rose by an incredible 1218%. While the year did see its fair share of volatility, the overall trend was undeniably positive.
Looking ahead to 2018, the future of Bitcoin appears to be bright. Many analysts are predicting that the price of Bitcoin will continue to rise, and could potentially reach $50,000 or more by the end of the year. Of course, there is no way to know for sure what will happen in the coming months.
Conclusion
2017 was a remarkable year for Bitcoin, with its price rising from $998 to $14,156 in just twelve months. The cryptocurrency market underwent significant changes during this time, including increased adoption by mainstream businesses, regulatory changes and a surge in trading volume. Various economic trends, global events and news headlines all played a role in influencing Bitcoin’s price movements throughout the year.
For those looking to invest in Bitcoin, the key takeaway from 2017 is that the cryptocurrency can be incredibly volatile. However, if you are able to weather the storm, there is the potential for great rewards. With 2018 already off to a strong start, it will be interesting to see how Bitcoin performs over the course of the year.
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