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By the end of the year, Bitcoin will reach $ 35,000


Earlier this year, when the price of Bitcoin compared to the record highs of December 2017 fell by more than 60%, another very important indicator - the number of transactions in the blockchain for the day - decreased. Compared to December last year, this figure has dropped almost twofold, reaching a record low mark over the past two years. "We had a hype-cycle and now it's cooling down," explains Charles Morris, investment director for the London-based company Newscape Capital Group, "We just may be entering a bear market" 

Judging by the information provided by the analytical company, the average number of transactions decreased from 400,000 transactions per week in mid-December 2017 to 200,000 last week. This figure is comparable to the figures when Bitcoin was trading at around $ 500. The situation with transactions awaiting confirmation in the Bitcoin network is even worse. This number dropped from 130 million bytes per week in early January to 30 million now.

The community offers many explanations for the decline in activity in the cryptocurrency market - from software problems to unpleasant news about the forthcoming regulation in various countries. Another interesting fact is why, against the backdrop of a partial restoration of the Bitcoin price and a decrease in commissions in February, the number of transactions did not return to previous volumes. This question leads some investors to think about a possible decrease in the popularity of the cryptocurrency.

Other participants of the cryptocurrency community, on the contrary, believe that low volumes of transactions in the blockchain do not necessarily mean problems for Bitcoins. They call this situation an indicator of healthy stabilization and maturation of the financial market.

According to the head of the investment company LDJ Capital David Drake, most likely, the rates of cryptocurrencies this year will again go up. He believes that by the end of the year Bitcoin will reach $ 35,000.

The decline in transaction volumes can also be explained by "inertia" after a long period of high commissions and slow confirmations.

"We remember too slow and expensive transactions, and to forget it, it will take time," Drake says, "but everything will return."