Bitcoin Drops More Than $1,000 In Less Than 48 HoursNovember 10, 2017 9:27 pm
Bitcoin fell below $7,000 on Friday to trade more than $1,000 down from the latest all-time high it hit on Wednesday after traders swapped the cryptocurrency for a clone called BItcoin Cash, raising its value up around a third, according to Reuters.
Bitcoin has recently been rising continuously, eclipsing its record highs week after week with a vertiginous sevenfold increase since the beginning of the year.
But some investors have been warning that the bubble is going to burst on Bitcoin and that may be soon.
Bitcoin reached a record high of $7,888 around 1800 GMT on Wednesday after a software upgrade that was scheduled for next week was suspended since it could have created a so-called “fork” that would have split the cryptocurrency.
That peak was short-lived after Bitcoin fell to as low as $6,718 around 1330 GMT on Friday, but recovered to $6,880 by 1645 GMT, still a loss of almost 4 percent on the day.
“Bitcoin is all ups and downs,” said Thomas Bertani, chief executive of Eidoo, a cryptocurrency wallet provider that recently became the first startup in the space to take out a full-page advert in the Wall Street Journal newspaper.
“The market realized that the price rise was an over-reaching, so people started selling… (and) there are many long and short positions that amplify price movements.”
Bitcoin Cash was able to take advantage of the fall and traded up as much as 35 percent on the day to around $850, according to Coinmarketcap.
Bitcoin Cash’s transactions are processed in “blocks” that are larger in capacity than Bitcoin’s which allows for more transactions to be processed at any given time and makes transaction fees much cheaper.
The fork was planned for next week, “SegWit2x,” was also intended to increase the capacity of the blocks and could have reduced fees for bitcoin transactions.
Bertani said that way investors could view bitcoin more as a currency than a store of value and could be tempted to buy into Bitcoin Cash after Segwit2x was delayed.
“People who had been supporting Segwit2x could as an alternative move to Bitcoin Cash,” he said. “There are good reasons to believe that Bitcoin Cash could be an alternative for people who believe that low fees on bitcoin transactions are needed today.”
–WN.com, Maureen Foody