Bitcoin Price Dips After Bull Market Stutters

Earlier this week, Bitcoin analysts expected the cryptocurrency to pass the $12,000 mark again. However, a sudden bump in the bull market brought the price back down under $10,000 on Thursday.

On Wednesday, the cryptocurrency was trading at around $11,700, according to CoinDesk, up 85 percent from its lowest point this month, around $6,700.

Analysts predicted that if the market remained bullish, the coin could surge up as high as $20,000, according to CoinDesk. Instead, it dropped almost 17 percent from its Wednesday high.

Other cryptocurrencies, including the Bitcoin offshoot Bitcoin Cash, Ripple and Stellar also had poor weeks, dropping as much as 24.99 percent from recent highs according to CoinDesk.

Earlier this month, a large sell-off triggered a minor market crash, with the value plunging in its biggest loss since December 2013, according to Reuters.

The price drop was triggered by global concerns about government regulation of the currency. Countries like South Korea, where the coin has received more resistance, have begun publicly questioning the benefit of the cryptocurrencies and whether they can continue to operate anonymously.

In addition, Members of Parliament in the United Kingdom have questioned whether the government should take steps to protect consumers from the technology behind the currencies, according to The Express. Nicky Morgan, chair of the treasury committee, said while people are becoming more aware of cryptocurrencies such as BitCoin using popular tools such as crypto code, they may be less aware of the lack of regulation behind the currencies in the UK, according to The Express

Despite the drop-offs and uncertain market for cryptocurrencies, investors continue to remain optimistic about the future of the cryptocurrency, according to Reuters.

Transaction fees related to the currency, long a point of contention for active and potential investors, have reached a six-month low of $0.36/kB on Feb. 21, according to ArsTechnica. In December, the fee soared to $34 per transaction, a price point that may have discouraged businesses and investors from participating in the market. Valve, a video game company, began refusing BitCoin transactions in December as a result of the high fees. However, the price has now plunged to below $.50 per transaction.

Khurram Aziz is a web entrepreneur who trained as a journalist. He is a freelance writer, runs online ventures, and consults on WordPress and Magento web development.