Will Bitcoin Break The $1,000 Barrier in 2014?
It has a been a rollercoaster ride for Bitcoin prices in the past few weeks. From a high of over $1,100 to a low of $520 some change depending on the exchange you use, Bitcoin has lived up to the claims of authorities across the globe as being volatile. It seems to be sitting at a comfortable $700 level after the shakeup of recent weeks but Bitcoiners far and wide are awaiting to see what the new year will bring.
Uncertainty End 2013
For those who are new to the Bitcoin scene, these events of recent weeks has been nail biting. If you bought Bitcoin around the $1,000 mark then you have already lost on your investment. You are undoubtedly going to be concerned about whether you should sell now or hold. Will Bitcoin at least reach the lower $1,000 region for you to get your money out?
There is no way of saying for sure. But there is no end to Bitcoin in sight. In fact the revolution is well underway and even without the blessings of government and financial authorities, it seems that Bitcoin will not be held back. Recent events have made the community jittery but recovery in price would have very likely occurred much quicker had it not been for the December slowdown.
The Highlights of Late 2013
A recap of recent events:
- 27 November 2013: Bitcoin hit the $1,000 mark having doubled in 7 days before that.
- 29 November 2013: One Bitcoin was worth more than one ounce of gold.
- 30 November 2013: Reports that merchants accepting Bitcoin payments increased by 81% in one month.
- 4 December 2013: China stops banks and other financial institutions from dealing in Bitcoin but does not ban Bitcoin entirely.
- 5 December 2013: Bitcoin prices falls by around $300 on some exchanges.
- 10 December 2013: China’s new rules about Bitcoin starts to make waves around the globe.
- 16 December 2013: Rumors float around about China banning third party payment providers from doing business with exchanges.
- 17 December 2013: The rumors are confirmed by other sources and third party payment providers implement it.
- 18 December 2013: Bitcoin prices fall to the $500 region from its highest just 3 weeks prior.
- 21 December 2013: Prices start to recover and enter the upper $600 region.
The days before Christmas and shortly thereafter has been dominated by mostly positive news about Bitcoin, despite some uncertainty in India where exchanges started shutting down in response to government warnings. Fortunately India is not a big player in the Bitcoin scene at the moment so it did not significantly compromise Bitcoin prices.
Current Price Not True Reflection
The money markets slowdown by late December in just about every country. It is largely due to the Christmas season and festivities surrounding the new year. What we see now of Bitcoin is by no means a true reflection of where it should be. It could be higher, but could also be lower than the prices seen on most exchanges.
What happens in January 2014 remains to be seen. But by all accounts the sentiment is positive. Well, positive if you do not live in China and India specifically. If the global sentiment is anything to go by, and the so called Bitcoin ‘gurus’ are to be believed, then it should reach $1,000 quite quickly in 2014 and even go beyond to new highs that have not as yet been seen.