Bitcoin Price Prediction for July 25, 2016
Jul 25, 2016 --- (ARCHIVED) Free Reports
Market Commentary (BTC):
While the bitcoin markets continue to chop around to washout near term players, all eyes are now focused on the goings-on with the Ethereum project. As many of you know, late last week Ethereum hard forked the protocol in order to "fix" the issues created by the DAO. Despite what the vocal segment of the ETH community asserted, it now seems as though a consensus was not reached which is why we currently have two competing chains running: Ethereum HF and Ethereum Classic. "Classic" is the unforked chain that still contains the DAO code and its execution, while the newer chain does not but is currently the dominant one.
It gets really interesting at an exchange like Poloniex where both coins are trading, both against each other as well as in BTC pairs, so we get to see in real time where the investment capital is flowing. Despite the fact that we like ETC (Ethereum Classic) much more than the new chain, there is still alot of wood to chop if it is to overtake the ETHF chain (more details forthcoming in the Crypto Update later today).
So what does all of this mean for bitcoin? Well, for one it exemplifies possible consequences when a contentious hard fork is hastily undertaken, a lesson for all "big-blockers" out there. Also, it puts bitcoin's immutability into the spotlight which is yet another case for it being the crypto "reserve currency", and finally it highlights the ideology of the community members of the different camps.
This fiasco is sucking up alot of trading capital, as well as market energy, which is leaving bitcoin stuck in the same trading range it has been in for most of this month. We think it is reasonable to expect that this stagnant period continues until we get more clarity on the Ethereum situation, which actually might not be such a bad thing for the largest cryptocurrency over the long term.