Skip to content

Why 2017 can turn out to be very positive for Bitcoin

Bitcoin has had a strong start to 2017 with the trend looking strong enough to break the all-time high set in 2013. 2016 has been a positive year for the cryptocurrency with the currency showing an increase of $460 during the year. Most investors have resorted to use this digital asset as a portfolio diversifier and it has proved out to be a winning gamble. Fundamentally this was a well thought out move and it payed off with good dividends. But the question lingering in the minds of many Bitcoin enthusiasts and investors is how these strategies and Bitcoin would fare in 2017.  Let’s look into few reasons why we believe Bitcoin would continue to weather the terrain to outperform assets:

China and the East step up the game:



China has always been a major price and volume driver for Bitcoin. The Yuan trading volumes observed a major uptick towards the year end owing to the Chinese Government’s announcement of imposing capital controls over Bitcoin. While this might happen sometime late this year, people are now actively moving funds out of the country at a very quick pace. This avalanche might last for a good amount of time into 2017.

With Japan abolishing sales tax on Bitcoin, South Korea encouraging Bitcoin and Blockchain accelerators and India’s demonization prompting for a cashless Indian society, the contributing prospects from the east only look stronger.

Eurozone’s loss would be Bitcoin’s gain:


The staggering effect of Brexit this year was evident when the European markets collapsed while Bitcoin soared mid-year to trigger a bull run. This quick transfer of funds into a digital unrelated asset has been the defining aspect of 2016’s Bitcoin Bull Run. In the face of Geo-Political crisis Bitcoin has replaced Gold as the safe hedge. With Eurozone still wobbly with impending debt and banking bail outs, cryptocurrencies seem to be a safer option for investing and hedging.

With Italian banking bail outs, Spain’s growing recession, ongoing crisis in Greece and post effects of Brexit, 2017 would see heavy activity in Bitcoin owing to the European continent.

USA’s growing adoption levels and the Trump factor:


The regulation of cryptocurrencies has been a hot topic in the US senate in 2016 and has seen some implementation in major states. With Trump’s policies aligned with major changes required to accelerate Fintech industry, adoption might reach higher levels in 2017. With thoughtful regulation and strong backing, mainstream adoption looks very viable in USA which would drive prices significantly in 2017.

Summing up, 2017 looks very positive for Bitcoin and Blockchain with the cryptocurrency all set to reach new levels of penetration.

Bitcoin Set to Soar to Record Highs in 2017

Bitcoin is starting 2017 from a position of strength with gains straight out of the gates as the markets opened for trading in 2017. 2016 was a mixed year for Bitcoin traders and investors as the cryptocurrency alternated between exciting highs and gut wrenching lows even though we had more gains than losses. 2017 is already shaping up to be a massively bullish year for Bitcoin traders and investors.

On Monday, January 2, 2017, Bitcoin built enough momentum to cross the $1000 milestone once again after it reached a 3-year high of $1,033. On Tuesday, January 3, 2017, Bitcoin showed that the gains in first trading day of the year were here to stay. As at market close on Tuesday, Bitcoin was already up to $1,062 as it moves towards its all-time high price of $1,216.70 that it recorded in 2013.

Here’s why Bitcoin is soaring


Source: Tradeblock

Bitcoin’s start in 2017 is interesting because it crashed as low as $200 in 2015. In 2016, Bitcoin started the year at around $400. Now, Bitcoin is starting 2017 above $1000 and it trades about 140% higher than its 2016 starting price. Without much ado, 2017 could turn out to be the year that the Bitcoin and blockchain technology gets mainstream adoption for finances.

The first reason behind the upsurge in Bitcoin prices is the increased interest in the cryptocurrency as fiat currencies start to falter in some economies. For instance, Bitcoin is becoming the go-to currency in Venezuela as inflation continues to erode the value of its currency.

In India, the Modi administration has removed the highest denominations from circulation as part of efforts to curb corruption. The removal of large bank notes has a negative effect on trade; hence, Bitcoin is moving in to fill the void.

In China, the wealthy top percentile is using Bitcoin as a measure to evade the government’s tight rein on money transfers. Beijing is very strict on how people can move money in and out of the country but Bitcoin provides a better alternative to the Yuan and USD.

What does the rest of the year hold for Bitcoin?

An objective analysis of the impressive start that Bitcoin has this year shows that speculative trades are fuelling a part of its bullish rally. To start with, the trend towards isolationism in the global political landscape suggests that fiat currencies are at risk of being caught in the crosshairs of an economic cold war. In contrast, the global decentralized nature of Bitcoin suggests that investors would be better served holding Bitcoin than holding other fiat currencies.

Vinny Lingham (@VinnyLingham)CEO of Civik Key and a Shark on SharkTanks notes that Bitcoin could reach $3000 this year because of increased interest in the cryptocurrency. In his words “the faster new money flows into Bitcoin, the quicker old money flows out. Slow & steady stores value. $3k should be our MAX target for 2017”.