Bitcoin price plummeted 10% overnight, but analysts say it could reach $3,000 in the future

According to foreign media, Bitfinex, one of the world's largest exchanges, suspended trading due to an investigation into facility issues, causing the price of Bitcoin to plummet by nearly 10% overnight.

In the past month, Bitcoin has been on a crazy rise, rising by more than 70% in a few weeks and hitting a two-year high of $785. However, after the unexpected trading failure of Bitfinex, Bitcoin reversed its crazy rise and the price fell back by about 10%.

Today, the price of Bitcoin fell back to around $650, once reaching $640, which is roughly equivalent to the trading price ten days ago.

In September last year, the price of Bitcoin was only $230, but it has risen by 200% this year, reaching a high of $785 a few days ago. Some analysts say that the recent surge in Bitcoin prices is driven by Chinese buyers.

However, some analysts believe that there is still room for Bitcoin prices to rise.

According to financial blog Zerohedge, Austrian economist Trace Mayer, who has invested in a number of bitcoin startups, believes that bitcoin prices are likely to reach $2,500 to $3,000 after the second halving of bitcoin block rewards in mid-July.

The Bitcoin open source software protocol stipulates that every 210,000 blocks, the Bitcoin block reward will be halved, thus creating a "halving". Currently, the 415,000th Bitcoin block has been mined, and there are less than 5,000 blocks left before Bitcoin's second major economic transformation, which is the halving of output. By then, the Bitcoin block reward will drop sharply from the current 25 Bitcoins per block to 12.5 Bitcoins per block.

Mayer introduced that after the last Bitcoin block reward halving, the price of Bitcoin soared from US$7 to US$266 in a few months, and this time, Bitcoin is expected to rise from US$300 to US$3,000.

Also, remember the Harvard twins who sued the Facebook founders? They have become the founders of Gemini, a listed Bitcoin exchange.

Tyler Winklevoss, one of the twins, believes that although Bitcoin has soared in the past two weeks, looking at the overall market value of Bitcoin, it is still quite small, which means there is still a lot of room for price growth. At present, Bitcoin seems to be undervalued.

Gemini, founded by the twins, obtained trading qualifications in 31 U.S. states and the U.S. capital in October last year. In May this year, it also obtained the world's first Ethereum trading qualification. In an interview with CNBC a few days ago, they also expressed their intention to expand Gemini's electronic currency trading to the UK.

However, the analysis also indicates that if there is an error or problem in a major Bitcoin transaction, the price will fall back.

In addition to the Bitfinex transaction failure this morning, last Friday, an Ethereum decentralized organization was attacked due to a vulnerability, resulting in the theft of at least $5 billion in Ethereum. This news also caused Bitcoin to fall 10% to around $640 during the session, but Bitcoin then stood above $700. Ethereum is one of the four major electronic currencies on the market, and it is expected that it is also a competitor of Bitcoin in the market.