Sunday, February 5, 2023

Bitcoin Price Stumbles as Round 2 of Hard Fork Fighting Begins

Bitcoin Price Stumbles as Round 2 of Hard Fork Fighting Begins

After an impressive recovery from a pull-back caused by China’s cryptocurrency crackdown, the bitcoin price is down again. This time, it looks like the small dip is due to renewed infighting as a second hard fork approaches.

Also read: The Tourism Industry in Malta Is Going Strictly Bitcoin

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Hard Fork Drama: Yeah, It’s Not Over Yet

On the morning of October 3, the bitcoin price fell from the $4400s into the high $4200s. At press time, the price stands at $4285.

While this may be alarming, Bitsonline’s official technical analysis maintains that $3800 stands as a solid support level, which would be hard to break. However, with hard fork drama stirring up again, the fighting could get bad enough to scare traders out of the market, driving the price down further. At this point, anything is possible in the coming weeks.

This drop coincides with an influx of posts on subreddit r/Bitcoin subreddit regarding the upcoming hard fork to increase the block size. Recently, a social media movement dubbed “no2x” have started pushing for miners to reject the 2X fork, opting instead for Bitcoin with SegWit activated and no change to the base block size.

One post in particular received a lot of attention. Redditor “Markers34” posted a screenshot of an email from Crypto Facilities Ltd., in which they stated they no longer supported SegWit2X due to it involving “a hard fork without strong replay protection.”

Crypto Facilities hard fork

In the comments section of that post, a few people expressed a desire to pressure more businesses and miners to withdraw their support from the New York Agreement and the upcoming 2X hard fork.

Bitcoin Cash Is Declining, Too

Bitcoin Cash — the forked version of Bitcoin — also dropped in value this morning, its price falling below $400 for the first time since August.

According to discussion on the Cash-supporting r/BTC subreddit, this drop is related to the second hard fork as well, but for a different reason.

Redditor “increaseblocks” posted a theory in which he said Bitcoin Cash had dropped because “people are putting their money back into the SegWit1X chain for now so they can claim coins on both chains come November.”

Several people agreed with this statement. Some even pointed out that many other altcoins had exhibited similar behavior — with people selling their alts for Bitcoin in order to double their coins in the hard fork.

If this theory rings true, we will likely see the Bitcoin Cash price recover significantly once the fork occurs.

As for Bitcoin, it looks like there might be another battle of the blockchains. Without consensus on the 2X hard fork, the blockchain will split again, creating yet another version of Bitcoin to compete with the “original.”

What’s your strategy for weathering the upcoming hard fork? Let us know in the comments below.

Images via Pixabay, Reddit//Markers34

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