The world’s largest cryptocurrency rose to new record highs yesterday, rallying to $7,848.31 on CoinDesk’s Bitcoin Price Index (BPI) before falling to a low of $7,058 today. As of writing, the bitcoin-US dollar (BTC/USD) exchange rate is trading at $7,253.50.
BTC began losing altitude soon after the markets were alerted that a controversial software update, known as Segwit2x, had officially been suspended. The software, which would have required a fork of the blockchain, had attracted a lot of attention in the media, and rightly so, as it could have led to chain split and the creation of free assets for BTC holders.
In this way, the BTC rally from the mid-Oct. low of $4,800 looks in part to have been fuelled by speculation that all BTC holders at the time of the “2x” hard fork would receive an equal amount of the newly created cryptocurrency – should a split have occurred.
Now that the hard fork has been called off, it’s safe to assume that bitcoin prices may fade in the short term…