2017 has been a great year for bitcoin, having gained over 1000% in value since the start from around $1000 to $20000. In December, Bitcoin has had major ups and downs prompting influential financiers and top traders to warn of a bubble sign. To the surprise of many Bitcoin has managed to stabilize and settle at around $14000 in most exchanges.
In addition to Bitcoin Christmas roller-coaster trend, news of South Korea possibility banning cryptocurrencies resulted to another drop in the value of the Bitcoin before regaining and stabilizing again.
Below are some of the reasons which must have caused the Christmas Bitcoin roller-coaster trend?
Most places and locations are yet adapting Bitcoin and other cryptocurrencies as a means of payment. This leads to users opting to trade them for fiat currencies to cater for the holiday which mostly involves lots expensive spending.
Bitcoin Cash VS Bitcoin
In December, Bitcoin cash has gained much value due to its prominence and having it supported at coinbase. It is seen as a cheaper alternative to Bitcoin by speculative buyers who will to capitalize on its expected value peak.
Competition from new altcoin
The Growth of new Altcoins and ICOs has resulted to a decrease of the Bitcoin hype which saw the established altcoins gain unexpected values
With reports approximately 40% of established Altcoins being owned by less than 10% of users, as well as approval trading at Wall Street this means that short trading can occur from time to time.
There has been much speculation of Bitcoin stabilization reducing the time-to-time price hikes. Speculative buyers expect it to maintain a price of around $15000 for the moment.