The bitcoin price has stormed back into the $3,000 USD zone, jumping over 13 percent in the past 24 hours. The surge hints at a new confidence in the digital currency, following a troubled month filled with fears of a destabilizing network split.
18% Price Gain in 24 Hours
The last time we saw BTC above $3,000 was in June, when it looked like the community had finally agreed to a roadmap on SegWit and potential block size increases.
Since then, however, things became more uncertain and the price dipped — giving everyone a scare when it suddenly fell to almost $1,800 in mid-July. Would fears of a contentious network split send bitcoin back to triple digits for months, if not years?
However BIP 91 won the required 80 percent hashing support within the deadline, and SegWit will soon activate on the Bitcoin network. The vast majority of miners continue to support the dominant chain — and it looks like money is starting to flow back in.
Bitcoin Still the Main Chain, but Block Debate Not Over Yet
The irony is that Bitcoin did actually hard fork. On 1st August the non-SegWit, large-block project Bitcoin Cash went live and captured a vast majority of headlines, if not hashing power.
As BTC has risen, however, BCC/BCH has dropped — at least for now. Its price has been volatile on the handful of exchanges that trade it, topping $700 on CoinMarketCap before falling back to its current $233.
There wasn’t a huge rush to back Bitcoin Cash with hashing power either, with ViaBTC and the Hong Kong Bitcoin Center still mining most blocks. High initial difficulty meant it was hard to actually use Bitcoin Cash and few online services wanted to accept deposits. However, that has since adjusted and blocks are now coming at a more regular pace.
From here, it’s a matter of how high BTC may go before the next “FUD period” which should arrive around November 2017. That’s when the network will decide once again if it wants to keep 1MB blocks or increase them to 2MB. That result is far less predictable, and the result could determine who makes key decisions on Bitcoin’s future direction.
What will happen to the bitcoin price from here on? Let’s hear your opinions.
Images via Cryptowat.ch, Pixabay