The price of bitcoin has been rallying for the past month with some crazy momentum. Everyone has been expecting the fork of bitcoin network to happen on November 14th of this year. If you are not familiar with a blockchain fork – it is basically making a copy of the current blockchain. It runs alongside the current blockchain that it copied from.
One main reason for the price increase was that the current holders would receive an identical amount of the “New Bitcoin” right after the fork. This has caused the price to surge to new all-time highs.
Right after the announcement, bitcoin price surged to $8,000 and retraced back to low $7,000s at the time of writing. Main reasoning for this is that investors who intended to purchase and hold BTC, have started liquidating their BTC to other altcoins.
Many blame lack of consensus for this cancellation. However, this does not end the possibilities of other forks happening.
Currently, Ethereum seems to be rallying because of this cancellation since lots of money has left from ETH to BTC in the past month.
It appears that the market will be retracing even more since the fork was cancelled. Bitcoin has fallen below $7,000 – could possibly reach lows of $5,000 until the next rally commences.
Backers of Segwit could not convince enough people to support the new fork. Since the chances of it becoming the mainstream blockchain are very thin, cancellation was inevitable.