As confirmation came through that a contentious software proposal had been discarded, Bitcoin set an all-time high of $7,879, before dropping to $7,070.
The general consensus among analysts is that this $800 high to low range was due to traders attempting to price in this intricate news. A syndicate of businesses and miners are no longer seeking to overhaul the blockchain mechanism or create a new cryptocurrency from its ashes.
An unexpected shock was seen in the charts by market observers, showcasing something not seen since September as China’s regulatory body moved to shutter its crypto exchanges and ban ICOs.
The prospect of the software proposal named Segwit2x, which was to be introduced to the network in mid-November, saw many new buyers allocating capital to the cryptocurrency in the expectation of a split and the creation of new coins.
However, as the possibility of a quick buck was no longer on the table, traders looked elsewhere in the market as a wave of rising assets was observed, according to cryptocurrency pricing service CoinMarketCap.
BTC Vix, Bitcoin trading group Whale Club’s organiser, said “Everyone was selling alts [alternative cryptocurrencies] and buying BTC. Now we are unwinding that”.
However, others in the industry, such as the CEO of the crypto exchange Bitstamp Nejc Kodric, stated his belief that the news may have resulted in discontent for traders looking to make a big profit with a fast purchase before a split: “I think 2x was a big cloud of uncertainty which now went away… some like it, some were just in it for the airdrop.”
Other analysts have suggested that it may be the case that new buyers might have been spooked due to any form of development in the market.
It’s still unclear as to what the future holds for Bitcoin’s value, however, most Bitcoin enthusiasts will be thanking their lucky stars that the bogeyman of the 2x crisis is no more.