By the end of 2017, the bitcoin price is projected to be at $6,000. Although this seems promising to investors, there are many experts who are of the opinion that high volatility should be expected in the near future. In August2017, Bitcoin split into two and a new cryptocurrency, Bitcoin Cash (BCC), was created. According to many experts, this split is just one of the many signs of volatility with the digital currency and people should expect more splits in the future. At the end of September 2017, Bitcoin (BTC) was being traded at around $4,300, which signaled an increase of over 70% in the quarter of September.
Many bitcoin news sites indicated that the shifting factors in developments and regulation in the currency could make its price more volatile since investors are used to a non-regulated cryptocurrency. The price of bitcoin is also going to affect further because, in recent years, the Bitcoin network has faced many transactions, and delays since the network were congested. Although fractions of the Bitcoin community had a solution of increasing the number of data that can be processed in just one transaction, other fractions disagreed which eventually led to a split.
Even though BCC was created after the split, it has not been performing better in the market. In early August 2017, the price of BCC had risen sharply to around $900. However, the strength of Bitcoin (BTC) and less adoption of Bitcoin Cash has seen its price drop sharply to $402. Another factor that will likely affect the Bitcoin price is ashift of power in China. China has always had a huge influence on the increase in theprice of bitcoin. However, the cryptocurrency is being cracked down by regulators in China, which saw the initial coin offerings being banned. If China loses its dominant status as a driver of bitcoin price, then this will see the price drop in coming years.