Short History

In the last 6 months, Bitcoin has crashed in value by more than 60 percent, many crypto traders have been panicking because of this which sent the Fear/Greed index to 11 at the time of writing.

If Bitcoin’s history is anything to go by, we can expect a potential boom. In 2017, Bitcoin rose from $1,000 to $20,000. In 2020, it dropped to $12,000, went up to $63,000, and dropped to $30,000 within the same year. Then, in 2021, BTC went as high as $69,000.

With these upward and downward trends in Bitcoin prices, it’s safe to say Bitcoin will rise again – hopefully, sooner than later.

The Boom and Crash

The Bitcoin boom can be attributed to a rush of interest, first in Japan and then in South Korea, which in turn had a resounding effect on the ALTs market during early 2017. The crashes soon followed in 2018 after a Japanese exchange was announced to have suffered an attack of over $500m, which was later revealed to have been false. No Bitcoin was stolen after all. Other crashes ranging from the COVID-19 to FED rate hikes, inflation, and correlation to the stock market are also dealing with the first cryptocurrency even now.

What to expect next?

Bitcoin's previous booms were all driven by small investors rushing into the market in the hopes of making a large profit in a short period of time. Its subsequent crashes occurred as a result of regulators, the broader market, or concerns about the sector's risks causing bitcoin holders to cash out.

Those trends appear to be continuing.

You can also read more on how the Chinese New Year [https://blog.quidax.com/how-the-chinese-new-year-affects-bitcoins-price/] affects Bitcoin's price.