Bitcoin, after gaining a new high on Wednesday, November 8, 2017 and breaking a new high of $7,800, quickly collapsed down to $7,000 amid the rumors about the cancellation of the fork. The news shook the crypto community the day before yesterday: head of the SegWit2x project Mike Belsh announced that the highly anticipated Bitcoin Cash November fork will not take place.
After regaining some of the positions, today, on Friday, November 10, the price continued its decline to the level 6800 and lower. According to information published on Coinmarketcap, the weighted average bitcoin rate by this time was $6,788, and on most exchanges its price decreased even more. For example, at the most liquid Bitfinex exchange, the bottom mark of the bitcoin price at the time of publication was $6,671, and on the large Bitstamp it was $6,722.
Bitcoin lost more than 5% of the opening price in 1 trading day, and about 15% since November 8. Bitcoin and the rest of its crypto currency counterparts show maximum sensitivity to news. As I believe, the reason for such a rapid decline in bitcoin price was the fact that as a result of the announcement of cancellation of SegWit2x hard fork, users who wanted to receive free coins decided to transfer their assets to other crypto currencies or fiat currencies. For now it is impossible to assume how long this effect will last.
We know this about SegWit2x: despite the fact that this project is officially frozen, behind its scenes some action takes place, the consequences of which, probably, can be assessed in the near future.
Earlier it was reported that the little-known mining pool bitPico the day before announced its refusal to recognize the fail of SegWit2x and the intention to carry out the planned hard fork despite the official announcement of its cancellation.
Users were also interested in the appearance of a mysterious website at bitcoin2x.org, which looks very similar to the official site of the first crypto currency bitcoin.org. The main page of this website contains a note about the decision to continue the work on the planned hard fork. At the same time, the announced early date of the hard fork for mid-November remains in force. In addition, the creators of the website claim that they will not allow the fate of bitcoin to be in the hands of six people.
There is no information about those behind this resource yet, neither a valid link to Developer Documentation.
It is worth noting that, simultaneously with the drop in the price of bitcoin, the price of Bitcoin Cash is rising. In addition, the developers of Bitcoin Classic today issued a call to switch to BCH, while notifying users that this project is closing.
Recommendation for traders: definitely, bitcoin will be in a shaky position now and investors should be careful, but for fans of high volatility and short-term deals, it will probably be possible to catch the direction and get a quick profit.
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The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.