Indeed, July was an interesting month for Bitcoin (BTC), the foremost cryptocurrency. The price of BTC reversed steadily despite the dips. It settled at $8,200 USD toward the end of the month, making traders finally happy.
Of course, others say that the market was in for a bull run. Many analysts argued that the new highs were mirroring a strong recovery point. This makes perfect sense, given that the market was coming from a late June low of $5,755 USD. No doubt, $8,200 USD was excellent. However, it is still way below the all-time high of $20,000 USD seen in December 2017.
Why Bitcoin Rose In July
Undoubtedly, there was an increase in activity on the BTC network in the month of July. A close observation at the time revealed a lot of improvements. Improvements were presented for the transaction volume per user and the number of unique addresses.
However, the metrics slid two weeks into August. The dip of the metrics dragged the price of BTC alongside. Consequently, the virtual currency price settled at $6,500 USD.
Re-configuring The Projection
Based on its performance, experts are compelled to review their expectations. From the golden $20,000 USD to $6,500 USD, the expectation has “slumped” considerably. Nevertheless, this price expectation dropped from an earlier expectation of $10,500 USD. It should be noted that these figures are generated from the interactive BTC price estimator.
Factors Affecting BTC Price
Sure, the global virtual currency industry has become a theater of drama of sorts. The reason is that digital coins have been largely unpredictable. The developments that have had more impacts are negative events. In truth, there were few events that have had a positive impact.
Restriction of banks on using credit cards to buy cryptocurrencies has had a negative impact. Also, regulators are regularly warning people to avoid digital coins. Just those two cases have major negative effects. Without a doubt, the impacts of the events were chaotic. They brought BTC down to its knees. Today, it is still struggling to stabilize at $6,000 USD.
What This Means For BTC Price
There’s no question all at that BTC price depends on demand and supply. The demand is driven by two factors. These factors are the number of users and the volume they transact in. On the supply side, BTC is capped.
Interestingly, 80% of Bitcoin is already mined. So, there’s a probability that demand can change, but not supply. Looking at the estimator, the number of unique users and transaction volume could change in 2018. Based on the August metrics explained above, BTC may remain below $10,000 USD for the remainder of the year.
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