Bitcoin fell by some $200 today, reaching a low of $2,515 from nearly $2,800 before stabilizing at the time of writing to around $2,560 with volumes considerably increased.
Trading volumes have risen to around $1.3 billion, from under $1 billion just yesterday, led by Bitfinex, Poloniex and South Korea’s Bihumb.
While Gemini has risen to fourth position, seemingly taking Coinbase’s GDAX place after the latter stated their customers can not withdraw Bitcoin Cash, angering both small blockers and big blockers alike.
Ethereum has started moving downwards too, falling more than 10% from around $225 to just above $200 before slightly recovering to around $205 at the time of writing.
Its volumes have somewhat picked up too as the sideway recent moves seemingly gives way to sharp action today on the two biggest digital currencies.
The reason is probably because the market is trying to price in the August 1st hardfork when bitcoin is to go through its first chain-split, creating two new coins. Bitcoin Cash (BCC) and Bitcoin Core, which is to retain the bitcoin name and BTC ticker, at least for now.
Bitcoin Cash’s futures price also fell somewhat today by around $100 from $550 to a current price of $466.44 at the time of writing.
BCC has seemingly taken some by surprise after segwit was activated with miners holding an “emergency meeting.”
Its supporters, however, say the implementation of segwit turns bitcoin into a settlement system due to the 75% discount of signature data which makes on-chain scaling much more difficult.
So they are splitting to continue Nakamoto’s roadmap, focusing on bitcoin as peer-to-peer digital cash with a direct blockchain payment network, rather than having to go through intermediary Lightning Network hubs.
Their level of support remains to be seen. Some exchanges and miners, like Kraken, Bithumb, ViaBTC, Bitcoin.com’s pool, will list it for trading or will allow their miners to choose it for mining.
Other exchanges, like Coinbase and Bitmex will not even allow its withdrawals, while Poloniex seems unsure, with the rest that have already made a statement allowing withdrawals, but unsure about listing.
They may change their mind dependent on price action, which we are soon to find out now with the historical hardfork having just one week left to go.