Bitcoin Price Corrects to $4,780 After Increasing by $530 in Three Days
After demonstrating a quick spike in value in the previous three days, the Bitcoin cost has recorded a slight correction, decreasing by over $4,900 to $4,780.
Regardless of the correction, since October 8, within a span of 3 times, the Bitcoin price has risen from $4,450 to $4,780, sustaining strong upward momentum as a result of rising confidence from traders and investors over Bitcoin’s short and mid-term growth.
Possible Factors For Correction
The Bitcoin price has surged radically over the previous 3 days, from $4,450 to $4,980, documenting a $530 increase. Normally, when the price of Bitcoin increases by over 10 percent, it is inclined to correct its short-term surge, giving a more stable platform to build momentum and reach new highs.
In the upcoming days, the Bitcoin cost will likely recover from its latest correction to above the $5,000 mark on account of the upcoming SegWit2x hard fork in November.
Before this week, Bitcoin analyst and investor Tuur Demeester emphasized the decrease in service of SegWit2x as a driving factor for its short-term price trend of Bitcoin. He noted that if more users, investors, the current market, and companies oppose the SegWit2x hard fork in November and the odds of the original Bitcoin blockchain staying since the majority chain rises, the price of Bitcoin would likely surge from the short-term.
But, the growth in demand for Bitcoin may also be credited to the hard fork implementation of SegWit2x in November because in order for investors to obtain SegWit2x coins, which leading Bitcoin wallets and exchanges such as Coinbase and Bitfinex will record as B2X, investors need to possess Bitcoin before this SegWit2x fork.
While the replay security implemented from the SegWit2x has been highly controversial–Jameson Lopp, the lead engineer for BitGo, went as far to describe it as a type of attack on Bitcoin–SegWit2x has implemented opt-in replay protection which could allow Bitcoin investors to be credited with SegWit2x coins or B2X tokens subsequent to the fork.
As Bitcoin programmer and Paxos chief architect Jimmy Song clarified:
“Segwit2x developers believe that they will be the majority chain following the hard fork. Therefore, they need all recent wallets which exist in the Bitcoin ecosystem to be compatible with 2x, not require upgrades. In other words, pockets and providers won’t need to update their applications using opt-in replay protection. Their view is that powerful replay protection would then cause a larger split from the ecosystem than desires to be.”
In the short-term, the SegWit2x challenging fork in November is beneficial for the price trend of Bitcoin because investors who either oppose or support the tricky fork will still choose to purchase more Bitcoin for different reasons; investors that are confident the initial Bitcoin blockchain would remain as the vast majority chain will invest in Bitcoin to maintain the digital currency as it gains in value, while investors that are confident SegWit2x would evolve into a majority series would also invest in Bitcoin to gain instant access to SegWit2x coins after the fork.
Additionally, in case the US, Japanese, and South Korean Bitcoin markets continue to show growth in demand for Bitcoin, and should the Russian government moves to licensing Bitcoin exchanges and regulating cryptocurrency trading actions as Russian President Vladimir Putin suggested that week, the price of Bitcoin could rise in the short-term.