Bitcoin Regains $1,000 In Lost Value After Dropping By About One-Third Over WeekendNovember 13, 2017 3:20 pm
Traders have set aside worries from the last four days in which bitcoin lost almost a third of its value and have begun to buy back into the cryptocurrency as it recovered more than $1,000 in value on Monday, Reuters reported.
In the latter part of last week, the report said, Bitcoin tumbled from Wednesday’s record high of just shy of $7,900 to a low of $5,555 on Sunday.
On Monday, Reuters reported, trading was up more than 14 percent on the day at $6,718, though that was still more than $1,000 less than last week’s record high.
Market-watchers said the fall had been driven by a decision on Wednesday to abandon a planned software upgrade, Reuters reported, that could have split the cryptocurrency in a so-called “fork” – a move that had initially had a positive impact on the digital coin, sending it to a record high of $7,888 on the view this marked a resolution of a long-term dispute.
But some analysts were disappointed “Segwit2x” fork had been abandoned, the report said. Had it been continued, it would have increased the capacity of the “blocks” transactions are processed in, thereby reducing competition to get payments processed and lowering transaction fees, the report said.
Consequently, analysts said, some of those who see low fees as important to the future of bitcoin were selling it for a clone called Bitcoin Cash that spun off from the original in August. Its block sizes are larger, and therefore transaction fees are lower, the report said.
Reuters said Bitcoin Cash’s value tripled at the end of the week as bitcoin slid, reaching an all-time high just below $2,000 Sunday and briefly overtaking Ethereum as the world’s second-biggest cryptocurrency.
But traders bought back into the original bitcoin on Monday, reversing Bitcoin Cash’s value. It was trading down more than 30 percent on the day at around $1,097, according to industry website Coinmarketcap.
“Bitcoin and Bitcoin Cash will co-exist and serve different use cases, just like Bitcoin and Ethereum. It’s not a zero sum game,” bitcoin and security expert Andreas Antopolous said in a Twitter post.
Bitcoin is up more than 500 percent so far this year.
– WN.com, Jack Durschlag