Ethereum continued to gain value yesterday, rising by another $20 from $170 to $190 from a recent bottom of $130, with its market cap now above $18 billion.
The currency has been experiencing a bear trend for much of June and July, with its price free-falling just two days ago, but sentiment might have somewhat changed as indicated by recent price action.
The main reason may be because of some certainty gained in bitcoin’s scalability debate following Antpool’s statement that they are now signalling for segwit2x, which is to activate segwit in the coming days.
They have recently been joined by other miners, with segwit2x’s hashrate rising to some 60%. The rest are expected to follow, with probably nearly all of them moving to the segwit2x chain.
That means it is probable only one chain will initially be known as bitcoin with the ticker of BTC, but there will probably be at least another new chain and coin to be known as Bitcoin Cash under the ticker of BCC.
The latter will likely start off as a minority chain, not much different to ETC last year, with the currency to be listed on ViaBTC – which will offer the option to mine it too – and on OKCoin.
All bitcoin holders will have the same amount of BCC and BTC, so some period of price volatility should be expected in the first week of August for bitcoin.
How that will affect ethereum is not very clear. Bitcoin went on a bull run after the eth split last year, so eth may do the same this time after the bitcoin split, but that remains to be seen.
As it may be the case investors run to fiat instead of eth, but ethereum has been enjoying the highest trading volumes recently, so it may just as well drag bitcoin up despite its troubles.
But, since price movements are hardly predictable, the reverse may happen if bitcoin significantly goes down. However, the main reason for that would likely be because BCC’s price would go up, so, rationally, it shouldn’t negatively affect ethereum.
To the contrary, ethereum may benefit from a period of uncertainty in bitcoin, where they soon will have to figure out the price values of the different coins, as eth would be standing on more stable grounds, but that’s if markets are rational, which arguably isn’t quite the case.