Bitcoin recovers as one analyst sees a price of $10,000 on the horizon

Bitcoin investors can let out a sigh of relief today as the cryptocurrency made a slight recovery after a week of losses.

After dropping to a low of around $2,200 yesterday, the volatile digital currency rose 3.03 per cent to $2,531.28 from yesterday's closing price, according to CoinDesk's index.

The losses, which began over the weekend, marked the end of a meteoric rise in the price of bitcoin.

As recently as March, bitcoin was trading just below $1,000. Over the course of a few months, however, the price shot up to above $3,000 on Sunday, before ultimately diving back down.

"This week has seen a breather for many highly trending markets, with the Nasdaq and bitcoin suffering, while the dollar managed to regain some ground. However, there is a good chance that we will see buyers come in once more for stocks and bitcoin, while the dollar is now coming under pressure," said Joshua Mahony, market analyst at IG.

Looking past the recent volatility, some analysts are predicting the price to continue rising over the next few years.

Adam Davies, a consultant at Altus who previously predicted bitcoin would near £3,000 by the end of 2017, said after a sudden drop in the fourth quarter, bitcoin will quickly gain ground throughout 2018, reaching $5,000 to $7,000 by mid 2018.

Davis said bitcoin will break the $10,000 barrier by 2019.

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