Bitcoin price had followed an interesting path during last five months there are no mysteries why value of bitcoin followed that route. There are some key factors which were responsible for the sudden surge and for correction in the value of bitcoin.
This five month's graph of a bitcoin's price tells the story that there were some buyers who showed interest in bitcoin during the uptrend and they lost there interest after very short period of time and the major reason for loosing interest was the regulations and minor reason was FUD(Fear Uncertainty and Doubt).
Phase 1: 300% Jump in Value of Bitcoin
That was not sudden pump it was the result of continuous struggle by bitcoin community who supported bitcoin for 7 years.
Lack of regulations and no threats of ban from governments were also the reason that attracted lots of investors towards blockchain technology. Awareness also played its role as some investors only got involved because of the technology and not for profits.
Phase 2: More than 70% Correction in the Value of Bitcoin
Healthy corrections are necessary for the continuity of any kind of stock or any trade able product similarly there should be healthy correction in the value of bitcoin however nobody expected 70% decrease in the value in just two months.
Main reasons were the threats of ban on cryptocurrency in countries who had major percentage of bitcoin like South Korea and India and Implementation of ban in China. No bans were implemented in South Korea and India however they are going to regularize it soon. Indian's are still confused as there banks have banned the cryptocurrency however p2p transactions are still legal.
Phase 3 : Confusion in the Minds of Investors
Phase 3 is more interesting phase as some of the experts of markets had previously predicted that bitcoin's value will decrease sooner or later as they knew that regulations will push some investors out of the market. At present time regulations are still in process and the will be implemented sooner but investors are not sure what they will be and how will they affect the trading of cryptocurrency market.
Investors are confused and they are reacting to the news either true or false that's why we can see that market is moving up and down very quickly. This trend will be over after implementations of regulations until then we have to wait for next news to predict the market.
Images Source : https://coinmarketcap.com/currencies/bitcoin/#charts