- Bitcoin (BTCUSD on xStation5) breaks above $6000 for the first time ever
- The so-called Bitcoin gold fork is scheduled to take place this Wednesday (25 October)
- Other cryptocurrencies suffer from a rally seen on Bitcoin as traders want to cash in on the split
- South Korea is going to step up supervision of Bitcoin trading
Does history repeat itself? If so, a rally seen on Bitcoin could keep on given another fork being just around the corner. Let’s pin down some details. The Bitcoin price surged above $6000 late Friday being predominantly driven by rising expectations before the upcoming split known as a fork which could take place as soon as this Wednesday. This will lead to the creation of a new cryptocurrency called Bitcoin gold. However, why did traders go nuts for BTC on Friday? Namely, holders of the genuine Bitcoin will get some Bitcoin gold when it is issued offering them free money, as simple as that, isn’t it? What’s more, it sounds similarly to the first fork which took place over holiday and resulted in the creation of Bitcoin Cash which was a by-product of the fork. This time could be the same as traders want to benefit from that event hence they should keep the Bitcoin price in demand. Finally, let us remind that the so-called Bitcoin gold fork is scheduled for 25 October which could point to heightened volatility on Bitcoin but on other virtual currencies as well.
After storming $6000 the Bitcoin price has handed back some of its gains as it’s approached a relevant support area. If sellers break below $5800, it could give a rise to a deeper corrective move even towards $5300. Either way, bullish momentum remains impressive hence any pullbacks might be quickly faded. Source: xStation5
While Bitcoin has stolen the show lately other cryptocurrencies have seemed to be sold-off which could have been a side-effect of the impending fork. As a result, Dash (DSHUSD), Ethereum (ETHUSD) and Ripple (XRPUSD) have lost momentum since Friday. Having said that, they could regain their appeal anew when the fork is already done.
On top of this, it’s worth mentioning South Korea which is pushing for structural reforms including strengthening the management and supervision of digital currency transactions (Bitcoin and others). Those steps may speed up as the IMF suggested a need for regulations on financial technologies and Bitcoin to maintain a competitive financial market and to establish a fair competition system. In a response to the IMF’s call, South Korean Deputy Minister and Minister of Strategy and Finance said “that the virtual money is a new field and it is expanding as a new field, but we are worried about the investment damage because there is no regulation. We’ll see if there is anything we can do”.