Bitcoin spent the first full week of February 2017 hovering stubbornly near the $1,000 mark, a psychological threshold that had captivated traders since the digital currency first breached it back in late 2013. After a roller-coaster January that saw intervention from China’s central bank, renewed bullish momentum pushed Bitcoin to a high of $1,024.14 on February 3 before settling at approximately $988.67 by February 10, according to CoinMarketCap data.
TL;DR
- Bitcoin traded at $988.67 on February 10, 2017, after hitting $1,024.14 on February 3
- The price represented an 11.5% gain from $918.56 on January 28
- Chinese CNY-denominated markets surged over 20% to ¥7,186.17
- PBoC intervention with exchanges BTCC, Huobi, and OKCoin led to elimination of margin trading
- Market sentiment recovered after initial fears of regulatory crackdown
The Road Back to $1,000
The journey to reclaim $1,000 was anything but smooth. Bitcoin had opened the final week of January at $918.56, still reeling from the People’s Bank of China’s unprecedented intervention in the cryptocurrency market. Chinese regulators had summoned executives from the country’s three largest exchanges — BTCC, Huobi, and OKCoin — for meetings that resulted in sweeping changes to how trading was conducted.
The exchanges were forced to eliminate margin trading, which had amplified both gains and losses for Chinese traders. They also began charging trading fees for the first time, ending an era of zero-fee trading that had made Chinese exchanges the highest-volume platforms in the world. For a market that had grown accustomed to leveraged speculation, these changes represented a fundamental shift in the trading landscape.
Yet despite these headwinds, Bitcoin mounted a decisive comeback. The 11.5% rally from January 28 to February 3 caught many traders off guard, particularly those who had positioned for further declines following the PBoC’s actions. Algorithmic trader Jacob Eliosoff noted that Chinese investors, who had “shyed away from bitcoin” in the wake of the regulatory crackdown, had “come roaring back” to the market.
China’s outsized Influence on Crypto Markets
In early 2017, Chinese markets dominated Bitcoin trading volume. The CNY-denominated market surged more than 20% during the first week of February, reaching a high of ¥7,186.17 after opening the week at ¥5,964.90. This outperformance compared to USD markets highlighted the disproportionate influence that Chinese traders and exchanges wielded over global Bitcoin pricing.
Petar Zivkovski, COO of leveraged Bitcoin trading platform Whaleclub, offered an optimistic interpretation of the PBoC’s involvement. Rather than viewing regulatory intervention as purely negative, he suggested it “was seen as a sign of legitimacy for bitcoin” — a signal that governments were beginning to take the technology seriously rather than ignoring or dismissing it.
However, not everyone shared this optimism. Zhou Shouji, operator of China OTC trading firm FinTech Blockchain Group, warned that further PBoC actions were likely forthcoming. “Everyone is waiting for the next PBoC action,” he said, noting that without margin trading and automated trading, prices could collapse more quickly on any negative developments.
A Calmer Market Emerges
One notable feature of the early February trading was the relative calm in price volatility. After the intense fluctuations that characterized the start of 2017, Bitcoin’s price movements became more measured. The digital currency fluctuated within a narrow band around $1,000, suggesting that the market was finding equilibrium after the regulatory shock.
This calm was particularly significant given the broader cryptocurrency market context. Ethereum traded at $11.28, Litecoin at $3.77, and Monero at $11.98 on February 10. The total cryptocurrency market capitalization stood at approximately $17.6 billion — a fraction of what it would become later in 2017. Bitcoin itself commanded a market cap of nearly $16 billion, with 16.15 million BTC in circulation.
The Fee Debate
Behind the scenes, a fierce debate raged over trading fees. OKCoin briefly published and then withdrew an announcement about fee changes, illustrating the tension between regulatory compliance and competitive pressures. Exchanges that had built their businesses on zero-fee models found themselves caught between the PBoC’s demands and the risk of losing traders to competitors.
Trading volume flooded to no-fee exchanges in the wake of the changes, raising serious questions about the reliability of reported volume figures. This opacity would become a recurring theme in cryptocurrency markets, with questions about wash trading and artificial volume persisting for years to come.
Why This Matters
The events of early February 2017 capture a pivotal moment in Bitcoin’s evolution from a niche digital currency into a globally traded asset. The tension between Chinese regulatory authority and market forces previewed the dynamic that would define much of cryptocurrency’s subsequent history: governments seeking to impose control on a system designed to operate without centralized authority.
The $1,000 level, which seemed like such a formidable barrier at the time, would be left far behind as Bitcoin embarked on its historic 2017 rally to nearly $20,000. But the lessons of this period — the impact of regulatory intervention, the dominance of Chinese markets, and the resilience of bullish sentiment — would echo through every subsequent market cycle in cryptocurrency history.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry significant risk. Always conduct your own research before making investment decisions.