Other than that, I see two more features worth mentioning. The first is the one week gap at the beginning of the month -- (I must remember to prepare the chart on the first of the month rather than for the first post) -- although the price at the end of 2017-08 coincided with the price at the beginning of 2017-09. The second is the big, sudden price spike downward at mid-month, corresponding to the big, sudden spike upward in volume.
What does Cointelegraph's Bitcoin Price Analysis say about the spike? The beginning of the month was marked by rumors from China.
- 2017-09-04: Bitcoin Price Drops to $4,300, What’s Next: Factors and Trends • 'Subsequent to achieving a new all-time high at $4,975 merely two days ago, Bitcoin price has decreased to around $4,350. Many analysts including Welt financial desk senior editor Holger Zschaepitz attributed the decline in Bitcoin price to China’s recent crackdown on initial coin offerings (ICOs).'
Mid-month was also marked by rumors from China.
- 2017-09-14: Bitcoin’s Price Declines Anew, Hits Three-Week Low • 'The price of Bitcoin price has declined below the $4,000-level, extending its losses in overnight trading to reach a three-week low of $3,275. This represents a 35% drop from its high of $5,000. [...] There are several possible reasons behind the recent drop in the price of the number one virtual currency. One of these is the alleged plan by the government of China to ban the activities of various cryptocurrency exchanges in the country.'
- 2017-09-15: Bitcoin, Ethereum, Bitcoin Cash, Ripple, Litecoin: Price Analysis, September 15 • 'BTC China has decided to shut down operations by Sept. 30. The first reaction by harried traders on such announcements is to sell and encash their holdings. Therefore, the sharp fall is understandable.'
The end of the month was marked by rumors from China.
- 2017-09-22: Bitcoin, Ethereum, Bitcoin Cash, Ripple, Litecoin: Price Analysis, September 22 • 'Bitcoin has entered a bear market and most of the news around it has turned bearish. Experts are speculating about the future of cryptocurrencies and what can be done to reduce the volatility.'
- 2017-09-29: Bitcoin, Ethereum, Litecoin: Price Overview • 'The news about the possible ban of mining farms in China has negatively impacted the market.'
Can we conclude that the bitcoin price is mainly driven by rumors from China? Crackdown on ICOs, ban the activities of cryptocurrency exchanges, ban of mining farms; what's next? Despite all of this, the price of bitcoin at the beginning of the month was only a few percentage points above the price at the end of the month. Does China really matter?
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