Last week, the internet was bursting with the news of Bitcoin going nowhere but up. But just as the digital currency set an all-time high of $7,879 as a result of a controversial software proposal being withdrawn, its worth fluctuated just as fast, deleting gains to hit a low of around $7,070. Still, for analysts, this $1,000 range was simply a case of the digital currency’s traders estimating in rather complicated news: a group of miners and businesses would no longer attempt to heighten Bitcoin’s software and pull up a cryptocurrency of their own.
In this way, analysts and observers alike conceded the truth that the listing showed something that hasn’t been exhibited for a long while ever since China tried to ban ICO—a sudden blow.
The software proposal was initially called Segwit2x, an attempt to increase the capacity of block sizes from 1MB to 2MB. It is expected to be implemented on or around the 16th of November, pushing Bitcoin’s worth up to the moon and causing new buyers to allocate their capital into the split with the thought of having two coins afterwards, before getting cancelled and left in the drain.
Even so, with the idea of an easy win-win situation, a glance at cryptocurrency pricing service CoinMarketCap showed an ocean of assets in the green, as the potential investors moved somewhere else within the market.
“Everyone was selling alts [alternative cryptocurrencies] and buying BTC. Now we are unwinding that,” said BTC VIX, the organizer of bitcoin trading group Whale Club.
Others, like cryptocurrency exchange Bitstamp CEO Nejc Kodric, said it seems as if the news resulted in disgruntlement for those thinking they could win big easily before a split.
While others suggested it simply could have been the case that any development in the system was enough to scare off any new potential buyers.
Driven to seek stable ground within Bitcoin because of its 700 percent in terms of gains just this year (or CME’s announcement of pushing for a futures contract by the end of the year), they simply must have been confused as to how to react with the unexpected event.
Such a view was acknowledged by Tim Enneking, who’s the managing director of the hedge fund Crypto Asset Management.
“I don’t think most people understood enough about the fork to understand the implications,” he stated.
The other end
Still, with the market rally winding down, there were also a few attempts to determine how the news could potentially mold the relationships between available blockchains with publicly traded tokens differently.
Amos Meiri, CEO of Colu, a startup seeking to encourage the business adoption of local cryptocurrencies, stated the decision is more likely to push startups that were initially leaning towards the Segwit2x proposal, to other options.
Still, even though he was against the idea, Meiri stated that the further abandonment of Segwit2x is grounds for concern within his Bitcoin circle, though it’s provided the businesses can still look for solutions down the line.
For example, on Twitter, there were posts talking about how this turnout of events might affect Litecoin and Bitcoin Cash, which was created back in August after a hardfork. Neither blockchain communities were affected much after the event however, with the Bitcoin blockchain going down about 5 percent, while Litecoin went up to only a mere 0.21 percent.
Despite this, there are still a few heads that are turning their heads towards the direction of the aforementioned cryptocurrencies, believing the tide may soon turn in their favor, leaving Bitcoin behind. Still, all of this is pure speculation for now.