Bitcoin price depreciated 10 percent amid SegWit activation uncertainties, as traders feeling cautious ahead of upcoming UASF activation battle resolution. How will SegWit activation impact cryptocurrency market?
26 July, AtoZForex – Ahead of the potential SegWit activation on 1st August, the king of top cryptocurrencies has dropped to its lowest level in 5 days this Tuesday. The uncertainty over the Bitcoin protocol split remains high, thus dragging the digital currencies down.
Bitcoin price drops below $2,500 on SegWit activation uncertainties
As investors rushed to sell their Bitcoins, the price of Bitcoin has fallen more than 10 percent to $2,487.13. This has marked its lowest levels since last Thursday when it has touched a low of $2,276.16. The data from Coindesk also suggests that other cryptocurrencies have lost some of their steam amid investors’ concerns.
Bitcoin has been trading below $2,500 level for some time, while now it is changing hands at $2516.19. Despite the fact that Bitcoin is very volatile, it is still trading double the price it was trading in 2016.
Last Thursday, AtoZForex reported that more than 90% Bitcoin miners support BIT 91, the Bitcoin improvement proposal. The BIP implies that a piece of code will be added to each new block of bitcoins they generate. Some of the largest Bitcoin miners – AntPool, BitClub, Bixin, BTC.com, and BitFury, have expressed their readiness to support the BIP 91.
SegWit2x activation issues
The BIP 91 is a step forward from the original SegWit proposal to the Digital Currency Group-led SegWit2x. The latter is also known as the Silbert accord. In spite of its short timeline that potentially might cause difficulties for developers, BIP 91 is the last chance for miners to avoid the Bitcoin protocol split. The split might result in the creation of two Bitcoin Blockchains.
The BIP 91 is an ultimate solution for the differences between the Aug. 1 User Activated Soft Fork and SegWit2x. However, investors now fear that the activation of SegWit2x might not go as planned. The research analyst at CoinDesk, Alex Sunnarborg, has commented on the SegWit activation uncertainties:
“I believe the market is currently somewhat torn between the optimism around BIP 91 locking in, which could lead to SegWit activating if all goes smoothly, and the fear of the second half of SegWit2x proposal, the 2MB block size hard fork, still being contested.”
The smooth activation requires that developers agree on the 2M block size by the time the solution needs to be implemented. The time for the solution implementations is set to November. In case the developers will not reach the consensus, the Bitcoin protocol split will become a reality.
Moreover, as we approach the 1st of August, the Coinbase exchange states in its FAQ section:
“Should the UAHF activate on August 1, Coinbase will not support the new blockchain or its associated coin. You will not be able to withdraw the UAHF version of any Bitcoin from Coinbase.”
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