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Bitcoin Price Analysis and SegWit

bitcoin price

Bitcoin Price Analysis and SegWit

While Bitcoin price is experiencing a new growth after the almost 50% drop from its all-time high, a few analysts of the crypto market suggest that bitcoin price at $4000 is in the air.

And this moment seems to come sooner than expected.

“When added to the professed agreement for major players to work together on the Bitcoin scaling issue starting September – if it becomes a reality, the price could see between $4,000 and $5,000 before the year ends,” said an expert to Cointelegraph.

2017 has been a good year for bitcoin price, as it traded at about $950 back in January and it reached its new all-time high a few months ago in June with a value of $3011: this means that bitcoin price grew of more than 3000% in a six-months period.

Compared to the all-time high we quoted above, the current price decrease is maybe due to the uncertainty around the upcoming SegWit activation that will take place on August 1st, 2017.

For those who are unfamiliar with this, SegWit is a new upgrade to the Bitcoin blockchain that will increase the block size to support more transactions and allow a faster confirmation for transactions.

At the moment, the blockchain supports up to 2000 transactions per block in 10 minutes and SegWit will double this capacity to 4000 transactions.

Also, Segwit2x will increase the size of each block from 1MB to 2MB.

SegWit will be implemented on August 1s, while it is not sure yet if Segwit2x will be implemented too.

That said, the real reason of uncertainty is caused by the hard fork needed to implement SegWit.

This might create two different chains in a similar way to what happened to Ethereum in 2016 with the DAO and Ethereum Classic.

Not a problem for the Bitcoin price

According to many experts in the industry, while this event might create panic sell and uncertainty within the community, will not be a real problem in the next future.

Kumar Gaurav of Cashaa explained to Cointelegraph:

“When looking at 2017 so far, it still has been a good year for Bitcoin, starting just below 1000$ and now standing just below $2,000. Whether and to which extent this overall trend will continue will be seen more clearly after some crucial dates such as 1st August. If 80% of the Bitcoin community adopts the updates all should be fine. It seems most likely this will be reached, as the current signaling of intended support is at 87.8 percent, an increase from 83.28 percent in May. Comparable to when in May, following the New York agreement on SegWit2x, Bitcoin reached an all-time high of $2,160, it can reach new all-time highs after a successful activation as Bitcoin will be more attractive again and bring users of other cryptocurrencies back to Bitcoin.”

Bitcoin-based ICOs

Another reason that might be influenced the price is the growing number of Bitcoin-based ICOs or Initial Coin Offerings.

ICOs managers might have cashed out during those days and this drove the prices because a huge amount of bitcoin appeared on the market.

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Amelia Tomasicchio
Amelia Tomasicchio

Amelia Tomasicchio is a content writer and marketer of Bitcoin-related news and fintech startups. She started writing about Bitcoin in 2014 and she graduated in Rome with an essay about movie industry related to Bitcoin.

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