This month began bearishly for the entire digital currency market, as a lot of digital currencies plunged significantly. The declines were triggered by reports that Goldman Sachs is delaying plans for its proposed trading desk for digital currencies. The news cause Bitcoin (BTC) to lose a considerable fraction of its value, making the coin to lose most of the gains it amassed a couple of days before the news.
The Decision of Goldman Sachs Is Only a Hiccup
Nevertheless, at the time of writing, Bitcoin (BTC) is trading at $6,567. While extreme volatility isn’t new to Bitcoin (BTC), the recent selloff appears to have been overdone. Many believe that the verdict of Goldman Sachs is just a glitch to the path of the digital currency to mainstream adoption. The present efforts of a lot of firms (both big and small) across several industries to integrate blockchain technology should definitely boost the adoption of prominent digital currencies in the long run.
Bitcoin (BTC) Price Today – BTC / USD
Factors That Contribute to the Value of Bitcoin (BTC)
Just like every other commodity, the fundamental value of Bitcoin (BTC) depends on supply and demand basically. There are two fundamental factors that drive the demand for BTC, and they are the number of transactions and the number of active users.
When it comes to supply, the total supply of Bitcoin (BTC) is capped, and almost 80 percent of it has already been mined. As a result of this, demand should be the major focus. Bitcoin (BTC) price has also been driven by news around it, and this has been a trend since its inception.
According to an interactive Bitcoin (BTC) Price Estimator by Forbes.com, there should be a gradual recovery in the number of users and also the volumes of transactions on the network of Bitcoin (BTC) in the next couple of months, and this will increase the value of the coin t about $8,500, but it should not be expected to cross this level by the end of 2018.