Bitcoin prices have a hit a bit of snag lately. After the China ICO fiasco, where the country announced that it will no longer allow new initial coin offerings (ICOs), BTC prices plummeted from near $5,000 to $3,200. The coin has made a recovery, however, bouncing back to just over $4,000 at one point, before coming back down to its current price of around $3,680, as of the writing of this article.
But this past week has been a dent in that recovery, bringing BTC down from over $4,000 to its current price. So why the drop?
I think it has to do with the market stabilizing itself. After all, people get so hyped up seeing Bitcoin rise that they forget it has the ability to fall just as swiftly. That by no means makes it a bad investment—after all, a lot of people have struck it rich by mining virtual gold—but it does mean that massive, heart-stopping swings are to be expected.
In the case of the China ICO block, we’re still too close to the event to know what the long-term ramifications will be for Bitcoin. But the BTC price has certainly taken a hit and remained muted after that drop.
While the rally helped bring the price back up to its loftier levels, the market is at the moment wary of Bitcoin, so I think we’ll be seeing a few dips like this for the rest of 2017. Having said that, I still believe strongly that BTC will reach $4,500 by the end of the year, barring some unforeseen news or scandal arising.
Bitcoin will take some time to recover, but the coin is in no immediate danger of a massive fall. The snag that has caught BTC will not last forever, and I still hold firm to my prediction that BTC will hit above $4,000 and end up closer to $4,500 by year’s end.