Bitcoin's Push to $8,000 Fades as Free-Money Trades Unwind

Updated on
  • Cryptocurrency avoids split, but some traders are disappointed
  • Past ‘hard forks’ proved profitable as new coins held value
Bitcoin: What’s Coming in the Year Ahead

Turns out not everyone is happy with the detente in bitcoin’s civil war.

While the cryptocurrency soared to a record $7,882 within minutes of news that it would avoid another split on Wednesday, the gains quickly evaporated. Bitcoin is now trading about 3 percent below where it was before a faction of the community scrapped plans for a so-called hard fork.

Some speculators are disappointed they won’t get the additional coins that would have been created by a hard fork. While bitcoin splits are potentially disruptive, they’ve so far amounted to free money for holders of the cryptocurrency. Bitcoin Cash, the result of a hard fork in August, now trades for around $600 and Bitcoin Gold, created in October, fetches about $140.

Bitcoin’s reversal was “likely due to disappointment among some that they wouldn’t get their free coins,” said Thomas Glucksmann, Hong Kong-based head of marketing at cryptocurrency exchange Gatecoin Ltd. “But overall we see the price recovering, given that bitcoin’s future is more certain now.”

Read more: a QuickTake Q&A on the debate behind SegWit2x

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