On November 8th, the SegWit2x team announced that they are dropping the scheduled bitcoin hardfork. According to them, this was an intentional move to prevent internal problems associated with bitcoin. But what was the intention behind this step and what will be the consequences?
Last week, we wrote an article that predicted the current market movement: Bitcoin's Money Will Outflow to Other Altcoins Sooner Than You Think, in which it was stated that the recent bitcoin price rise is unsustainable and bitcoin will see a correction after the announced fork. However, in contrary to the article, people did not have to wait until the fork to start withdrawing money as the SegWit team made this unexpected announcement. At the moment of the writing, several altcoins were already up 26%.
But Why Altcoins?
History has shown that the market usually seems to be strongly correlated with bitcoin. However, this time it was apparent that the variables changed. As everyone was preparing for the creation of the B2X tokens, attention was stolen from the altcoin market, but these have proven to be resilient than expected, and their prices did not seem to be affected by the capital inflow into bitcoin. At this point, it was indisputable that if a correction was going to happen, bitcoin would suffer proportionally more than the altcoins. Thus, the reasoning behind the alt coin urge is their growing independence from bitcoin and overall market confidence in them.
At the time of writing, bitcoin is down more than 300$ from today's high, ether's price is near 314$, from a low of 298$ this morning and many other altcoins are equally swimming in a sea of green. What will happen next is for the market to decide, but unexpected news like today don't happen very often and are definitely worth paying attention to.