What affects the rate of Bitcoin?

The most significant event at the beginning of 2017 in the cryptoworld is the record growth, followed by a rapid fall of the rate and capitalization of Bitcoin. The cryptocurrency rate, first reached 1139 dollars / 1 BTC, which is the historical maximum, and then fell to the level of $800. And if the reasons of the growth can be appraised, considering the interest of public and private companies to cryptocurrencies, it is still an open question why bitcoin collapsed. Some can find out the analogy with 2013 year, when there was a similar situation with the rate, but this time leap and collapse in rate have a number of features.

The volume and market capitalization.

The first and the main distinctive feature between 2013 and 2017 situation is the difference in trading volume. According to the Huobi cryptostock market, providing more than 20% of BTC world trade, amount of Bitcoins on the trades in 2017 was almost 37 times greater than the volume of the previous one - 15 million Bitcoins against 393,000 BTC. Thus, the growth and the depreciation is not a consequence of speculation, because it is necessary to control vast resources to perform. This fact suggests about long-term prospects for the cryptocurrency market, as the volume has grown is also the interest and recognition raised, at least, as a stock tool.

Chinese trace.

Chinese cryptocurrency exchanges provide more than 50% of Bitcoin transactions. On the day when the rate achieved the maximum, the press leaked the information about the owners BTCC, Huobi and OKcoin call to a meeting in the People's Bank of China. According to some sources, representatives of stock exchanges have been handed a warning that the Chinese government intends to tighten control, and as a result, the taxes on exchange transactions with cryptocurrency. How the PBC is going to carry it out - is not clear yet, but it is obvious that the rate dropped immediately after the news of the meeting appearance.

The essential rate correction.

Setting aside the conspiracy theories, the course correction looks, if not absolute, but at least a logical reason for the fall of the Bitcoin value. It is not a secret that the level of the rate on the stock markets depends on the psychological level. The market enjoys slump numbers, so it is very difficult to pass both up and down the levels of 5000, 7500 and 10,000 CNY and $ 1,000. Consequently, in the absence of excitement, rate should fluctuate within the boundaries of "slump numbers".

What to expect from Bitcoin?

As a summary, investors and traders can be sure about the safety of their cryptoinvestments - it looks like bitcoin and its forks shouldn't collapse so far. Yet, it is necessary to be prepared for possible changes in the market behavior, as well as increased government regulation, and to transfer part of their savings both into fiat and electronic assets.