Bitcoin Price – Where is the ceiling?
If you had ask me this very question several years ago I would have said, $30. I simply didn’t see how Bitcoin price could go much higher. The demand was gaining steam but the usage was stalling out. There are only so many pizzas you can eat in a day. The Price of a single Bitcoin started to gain steam in February of 2013 and by early April it had peaked at just over $250 per coin. Crazy I thought. Of course that boom was short lived as the price fell to about $100 as quickly as it rose to $250 plus. But, a funny thing happened on the way back down from the 2013 spring Bitcoin boom, the price dropped but it didn’t drop to pre boom prices, instead the Bitcoin price seemed to stabilize at around $100. Something I would have thought unheard of just a few months prior.
From May of 2013 until October of 2013, the price of Bitcoin bounced around the $100 mark but was never able to gain any real traction. Then China got involved. Once the Chinese began dabbling in digital currency, all hell broke loose. Bitcoin’s price began to rise dramatically in late October 2013. The market demand for Bitcoin had almost doubled or even tripled over night. By mid-November the price of Bitcoin had eclipsed the original high water mark of $266 set back in the spring and a few days after that had climbed all the way to $1,000! $1,000 dollars for a single Bitcoin, you have to be kidding me! I would have never predicted such an insane amount of money for a single Bitcoin. It didn’t seem possible just a few weeks ago! Soon after the price of Bitcoin hit 1k, the Chinese Government Issued a statement concerning Bitcoin; they announced that Chinese citizens were legally allowed to exchange Bitcoin as a commodity but that the government’s banks were not allowed to use Bitcoin as a currency. This particular announcement caused Bitcoin to crash back to a $600 level. Then Mgtox went bankrupt and the price continued to fell.
To date, Bitcoin is hovering around $270 to $300. At the going rate, the average Joe is no longer welcome in the realm of Bitcoin traders. Even those who might have bought at pre boom prices are sure to sell their Bitcoins soon for fear of a crash that could cost them thousands of dollars. Surely the Bitcoin ceiling has been reached. There is simply no way can the price of Bitcoin can go even higher than 1k, no way! Of course I never thought Bitcoin would see $100 much less $1,000 so don’t take my word on it.