As the blank kick off of the hard fork on the Bitcoin blockchain neared, the price of Bitcoin began to surge. It’s no mystery the reason for this is people wanted to get their hands on the free “Bitcoin2x” that will come from the splitting of the blockchain on block 494,784. (That’s what really happens, they just duplicate the block, rename it, and continue the new chain from there. We’re currently on block 491,765 – you can find out what block we’re on by visiting a blockchain browser like https://www.blocktrail.com/BTC)
The predicted time of the split is sometime in November. November 15th.
Now that we’re probably less than a month from the fork, the price of BTC is beginning to drop (~12% in the last 4 days). Why? Because not everyone cares about BT2, some people decided to sell their BTC while it was at an all time high. This also indicates that perhaps the market is afraid the price will actually plummet after the hard fork.
Let’s do some recent history. When Bitcoin began on it’s most recent rally, alt coins such as Litecoin (LTC), Ripple (XRP) and Ethereum (ETH) concurrently dropped. For the first time in digital currencies’ history, the alt coins did not follow Bitcoin’s trend.What does this tell us? People were exchanging their alt coins for BTC, most likely to receive the free Bitcoin2 during the hard fork.
Now…back to the predicting…As I mentioned earlier, based on the recent 12% downtrend in Bitcoin price, it seems that the market sentiment is leaning towards fear of a significant price drop after the hardfork is complete. I believe those people are correct.
After the fork, BTC is going to drop a bit, but something unusual is likely to ensue afterwards. We very well may see, alt coins not follow Bitcoin’s trend for the 2nd time, but this time in the opposite direction as the same people who exchanged before, having happily received their free BT2, begin to exchange their BTC back for the alt coins they so eagerly threw away before.
We should expect to see a drop in the price of BTC and a rise in the prices of ETH, LTC, XRP, and many other alt coins over the few days after the November 15th hard fork…
Within a short time Bitcoin will stabilize and begin to move back up above the $6000 mark, but more importantly alt coins will be left at new highs. (LTC could be stable at $200 and ETH at $500+)So in the long run, they will have followed the powerful BTC trend, but only with a 2 week delay. 😀
Hint* Buy the alt coins now while they are still cheap and make some good returns after the fork. 😀
Read, Learn, Listen! 