Bitcoin Price Breaks Below $6000, Bitcoin Cash Jumps 300% in Three Days

Screenshot 75

Screenshot 75

Get Trading Recommendations and Read Analysis on Hacked.com for just $39 per month. It surged out of its post-birth doldrums to climb to around $800 and surpass Ethereum as the crypto with the second largest market cap. Many investors stood to receive the same amount of coins following the fork, yet this time it seems they were unlucky.

The hard fork known as SegWit2x (called 2x for short) was scheduled to happen in mid-November at bitcoin block 494,784. But that is the sentiment seen in the market right now and is backed by talk (source: Fork.lol) that miners are finding it more profitable and are subsequently putting more effort into mining for Bitcoin Cash over Bitcoin.

Goldman Sachs experts predicted that Bitcoin prices will consolidate near the $8,000 mark for some time before continuing its surge, the CoinTelegraph reported. Moreover, analyst Willy Woo told CoinDesk that Bitcoin Cash is now heavily backed by Chinese traders and miners, making BCH a "strategic and geopolitical bet" on Chinese influence.

On the US -based Bitfinex exchange, Bitcoin hit a low of $5,426.00, its lowest since October 25 before pulling back to trade at $6,143.30 by 04:49 AM ET (09:49 AM GMT), still down 2.5% for the day. The fork was due to Bitcoin's plans to address scaling issues and adopt the SegWit2x platform. That would make transactions cheaper and faster for users, but servers (also known as miners) more power hungry, risking risky centralization. Xapo President Ted Rogers said that this growth of Bitcoin cash is completely inorganic and unsustainable for the long term.

The announcement to shelve the upgrade, however, drew disappointment from investors who had expected that the SegWit2x upgrade would have led to the creation of a new cryptocurrency that would have distributed to current holders of bitcoin.

Clearly, bitcoin and Bitcoin Cash have two contrasting visions; one envisions to evolve as a robust store of value, while the other aims to become a flexible settlement network or a digital cash system. Bitcoin's market cap fell to 119.96 billion.

With a block size of 8MB and several teams of developers that are competing to create a better version of Bitcoin, today's price action across cryptocurrency markets shows that it is well on track. Bitcoin started the year near $1,000 and at current prices has a total market capitalization of around $103 billion.

Featured image from Shutterstock.

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