Bitcoin Passes $1,000 Just 5 Days Into 2014
Speculation was rife about Bitcoin hitting the $1,000 mark once again somewhere in 2014 and it has happened, just 5 days into the new year. As Coinfirmation had predicted on whether Bitcoin will break the $1,000 barrier in 2014, the Bitcoin price in late December 2013 was restricted by reduced trading as the festive season pulled Bitcoiners away from the cryptocurrency scene. Sure enough, as life returns to normal following the festivities, Bitcoin bounced back.
For newcomers to the Bitcoin scene, it should not be alarming if your Bitcoin exchange of choice is not reflecting a $1,000 buy price. Remember that Bitcoin prices can vary significantly from one exchange to another. While most exchanges are showing a price in the $900 region, the price has passed $1,000 on Mt. Gox, the Japan-based cryptocurrency exchange which is one of the most popular.
Why Did Bitcoin Bounce Back?
So many Bitcoiners may be wondering why the price bounced back to the $1,000 mark so early in 2014. Remember that Bitcoin was sitting over the $1,000 mark in early December 2013 when the announcements and actions by Chinese authorities created panic. The price of Bitcoin fell rapidly and halved within a week. Further warnings by Indian, Taiwanese, Lebanese and other national authorities also did not help.
But Bitcoin, despite prices being volatile, bounced back. Why? There is no way of saying for sure. Speculation is rife that it may be due to well known business like Overstock and Zynga now accepting Bitcoin payments. Some think it may be partly the effort by organizations like Arisebitcoin in their recent pro-Bitcoin billboard campaign in San Francisco. And then there is the recent boom in the Bitcoin ATM scene as manufacturers start shipping units globally.
Further Rise in January 2014
Whether the price of Bitcoin will continue rising in January 2014 remains to be seen. But by all likelihood, Bitcoin prices are going to climb and possibly surpass previous highs in its existence somewhere in 2014. As people return to daily life after the holidays, the Bitcoin chatter is starting up again. In fact it may be one of the most exciting months for Bitcoin as newcomers to the scene are revved up after talking cryptocurrency during their vacation.
Where the price will go, or around where it will hover remains to be seen. There is much talk about Bitcoin reaching the $10,000 possibly in 2014, with some even throwing around the $100,000 figure. This is significant as Bitcoin prices of recent months is largely a result of speculation. The sentiment by end December 2013 was much more positive than it was after the Chinese shakeup.
With this in mind, it is possible that Bitcoin could sore to new highs in the coming week alone. For some, it could be a potential gold mine with the fastest return on investment ever seen. Imagine having bought Bitcoin when it halved in price in December 2013. You could have picked up Bitcoin around the $500 price on December 18th, 2013 and by today you could have almost doubled your money. That is a 100% return on your investment within 3 weeks.
Given today’s barrier-breaker price, Bitcoiners who got in after the price crash in December 2013 but before it started recovering will surely be smiling all the way to the bank.