Experts predict that bitcoin could recover nearly 40 percent to $6,000 by the end of the year. They also noted that investors should be prepared for more fluctuations before the bitcoin hits a new record. The bitcoin was trading around $4,333 on Tuesday. The third quarter of 2017 witnessed the most important events in the history of bitcoin.
In just over three months, bitcoin has grown by more than 74%, with the introduction of a new series of monitoring regulations. Bitcoin hit a record high of more than $5,000, but fell sharply as Chinese authorities banned some of their digital money transactions in mid-September. However, bitcoin has rebounded, with the outlook shifting to show underlying growth after the market gradually overtaken the initial shock.
Internal conflict and rift
Bitcoin has faced transaction bottlenecks. To solve that problem, the amount of data processed in a transaction needs to increase, but in the community there have been two dissenting views on how to deal with this. As a result, earlier this year, bitcoins were split in half, including Bitcoin and Bitcoin Cash.
The market capitalization of Bitcoin is more than 10 times that of Bitcoin Cash. Since the beginning of trading in early August 2017, the value of Bitcoin Cash has risen to nearly $900, but the current exchange rate of the currency has fallen, fluctuating around $402.
China used to be the controlling factor of bitcoin. However, regulators broke the digital currency deal, banning the ICOs. OKCoin, Huobi and BTCChina, three major Mainland bitcoins, have also stopped trading with customers. Meanwhile, Japan has a more open attitude with digital money.
Japanese regulators have legalized domestic bitcoin payments earlier this year. Last week, the Financial Services Authority of Japan (FSA) officially recognized 11 companies as registered virtual currency traders. It is still in the process of creating a separate digital coin called J-Coin with the backing of large financial institutions.
Goldman Sachs also warned investors should be prepared for more volatility in November 2017. The cause is that the bitcoin community may refuse SegWit2X, an upgraded technology to accelerate the bitcoin trade. If this happens, bitcoin may split again toward another bitcoin.