2017 Bitcoin Bull Run
From $900 to $20,000 – the game changing 2017 Bitcoin Bull Run explored in the BTCMEX Blog.
The pioneer cryptocurrency entered 2017 trading under 1,000 US dollars. The price surged to almost $20,000, triggering the hype and making early Bitcoin adopters overnight millionaires. In December 2017 BTC price went to a so far all-time high $19,891.
Experts are now on the fence about whether the price surge happened organically or the cryptocurrency market was manipulated by a single whale. Researchers John Griffin and Amin Shams suggested that around half of Bitcoin’s value between March 2017 and March 2018 was created by traders between Bitcoin and Tether – the US dollar-pegged stablecoin linked to crypto exchange Bitfinex.
Over that period, the total market value of Bitcoin soared to $326 billion from $16 billion a year earlier. Bitcoin’s market cap reached $165 billion, making BTC the world’s most valuable cryptocurrency.
January 2017 started with volatility caused by the People’s Bank of China tightening its oversight of the country’s then-dominant bitcoin exchanges. It led to a drop in trading volume as a result of the imposition of new trading fees by what were then the “Big Three” exchanges – Huobi, OKCoin, and BTCC.
The US Securities and Exchange Commission (SEC) rejected Cameron and Tyler Winklevoss’ application to launch a Bitcoin exchange-traded fund in March 2017. The market dropped nearly 30% ultimately recovering above the $1,000 level after the initial drop. As May drew to a close, the price of bitcoin climbed above $2,000 for the first time and surpassed $3,000 just weeks later.
The “summer of crypto love” started. Bitcoin was easily passing new price milestones. This summer also saw significant activity around initial coin offerings (ICO). By the first week of September, the price of bitcoin exceeded $5,000 for the first time. The reversal of the late summer’s gains came with the cryptocurrency’s price falling below $3,400 on September 14.
Despite the pending closure of China’s exchanges and a global crackdown on unregulated ICOs, Bitcoin started a new phase of the bull run by November. Yet for all the regulatory rumblings and forks away from the bitcoin network, the cryptocurrency’s price largely continued its upward trajectory, culminating with the CoinDesk Bitcoin Price Index’s all-time high of $19,783.21 on December 17.
The biggest market corrections seen to date sent Bitcoin’s price below $11,000. Over the coming days, the price of Bitcoin would recover, climbing back beyond $16,000 and higher on other cryptocurrency exchanges worldwide. Yet the value has begun falling, dropping to the mid-$13k’s by the beginning of 2018.
Bitcoin’s 2018 fall to $3,500 was explained through regulatory fears and actions of institutional investors. However, 2019 has seen a new run to $10,000 mainly driven by Facebook’s blockchain interest and the announcement of the Libra project.
Crypto web is currently speculating on the next all-time high and whether Bitcoin will repeat the 2017 pattern any soon.
Bitcoin is currently trading slightly below $10,000. The growth of entities strongly suggests that more people are using the cryptocurrency. This metric is relevant because the last time adoption grew, the cryptocurrency launched a bull market. Will it break the resistance this time?