Subsequent to the cancellation of the SegWit2x hard fork, the bitcoin price experienced an abrupt surge from $7,300 to $7,900. Upon reaching a new all-time high, bitcoin price has since fallen to $7,200.
As CCN.com previously reported, highly regarded analysts and bitcoin researchers including Will Woo of Woobull.com have predicted bitcoin price to endure a major correction, as investors who had previously allocated their funds from alternative cryptocurrencies (altcoins) to bitcoin with the sole intent of obtaining the SegWit2x coin or B2X after the hard fork move their funds out of bitcoin back to altcoins.
Chris Burniske, a partner at Placeholder Venture Capital and former cryptocurrency investment lead at ARK Invest, demonstrated the conflict between B2X dividend-expecting investors and bitcoin holders with the chart provided below.
Bullish Indicator For Bitcoin: Despite Sell-Off, Bitcoin Price Remains at $7,200
Despite the sell-off from B2X-expecting investors who intended to takeaway the newly created B2X tokens upon the November 16 SegWit2x hard fork and sell their bitcoins to invest in altcoins, the bitcoin price has remained above the the $7,150 mark.
Such trend is certainly a bullish indicator for the short and mid-term growth of bitcoin, because it has allowed bitcoin to position for another strong rally in the upcoming weeks. Many analysts expected either the cancellation or the execution of the SegWit2x hard fork to result in a plunge in the price of bitcoin, because either one of those two scenarios would have resulted in altcoin investors reallocating their funds from bitcoin to altcoins after being credited with SegWit2x.
Furthermore, as Jimmy Song and Tone Vays noted in their SegWit2x hard fork special podcast on World Crypto News, the bitcoin market and its investors are confident in the short and mid-term performance of bitcoin, now that uncertainty surrounding the SegWit2x hard fork has been eliminated.
It is also important to acknowledge the launch of a major bitcoin futures exchange by CME Group in the end of the fourth quarter of 2017, as that will result in large institutional and retail investors migrating “money on the sidelines” stored in offshore bank accounts, wealth management products (WMPs), and traditional safe haven assets to bitcoin.
The movement of hedge funds, institutional investors, and high profile traders will lead to a rapid increase in the liquidity of bitcoin and the entire cryptocurrency market, which is a bullish short-term indicator to consider.
Bitcoin has Survived Through SegWit2x, Where Does it Go From Here?
The bitcoin market has survived through SegWit2x without a hard fork, uncertainty over a split chain, and a massive sell-off. With bitcoin price above $7,200 even after the sell-off from investors who previously planned to takeaway their B2X dividends, it is at an optimal position to build upward momentum and initiate yet another strong rally in the upcoming weeks.
As CME Group Chairman Emeritus Leo Melamed stated, bitcoin is not merely a digital currency but a new asset class. Hedge funds, institutional investors, high profile traders, and large-scale investment firms are starting to see the shift in trend from traditional safe-haven assets to bitcoin.
Featured image from Shutterstock.
Last modified: May 21, 2020 9:07 AM UTC