Following the weekend’s lows, bitcoin has made a sharp recovery on Tuesday as concerns over a hardfork or split of the bitcoin blockchain simmer down.
Bitcoin price is now extending its rally from the recent 60-day low to hit a global average high above $2,350.
With over 65% of bitcoin’s hashing power now signaling for the activation of Segwit, a solution for the long-standing scaling debate engulfing the bitcoin community, bitcoin prices are now firmly on the rise. Miners were not expected to start signaling their intentions for the Segwit2x scaling proposal until July 21, in the lead-up to a vote that’s to occur on August 1.
If support for the upgrade reaches the required threshold of 80% for adoption, the consensus will see bitcoin avoid a network split. Digital currency exchanges like GDAX and OKCoin are among a number of others planning to suspend bitcoin trading in the event of a split of the blockchain. However, such has been traders’ renewed confidence in bitcoin in light of the progress toward a scaling solution that bitcoin price has climbed another 10% on Tuesday, on top of the 20% gained on Monday amid a wider crypto comeback.
After hitting a low of $1,830 this Sunday on the Bitstamp price index (BPI), bitcoin prices railed to hit a high near $2,100 on Monday to scale a high of $2,356 near 15:00 UTC. Prices are still climbing at press time.
“Traders are excited by the prospect of a resolution to the scaling debate, which is why the price has rallied,” Thomas Glucksmann, head of marketing at Hong Kong-based bitcoin exchange Gatecoin told Bloomberg.
While US markets are leading with nearly a third of the global trading, the Japanese market witnessed over 20% of the world’s traded bitcoins in a 24-hour period.
Taking a proactive lead in setting a possible precedent for governments’ stance on digital currencies, Japanese law now recognizes bitcoin as a legal method of payment. The recognition has gone mainstream, with an estimated 300,000 Japanese storefronts expected to be equipped to accept bitcoin payments this year alone.
Despite the recent losses, bitcoin is up 235% since the turn of the year. In adding to the positive turn, the looming possibility of a Segwit upgrade could also result in increasing bitcoin’s throughput through technologies like the Lightning Network with near-instant transactions.
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Charts from Bitcoin Wisdom and BraveNewCoin. Featured image from Shutterstock.
Last modified: July 2, 2020 8:19 PM UTC