Bitcoin’s price has started moving in a straight line at around $2,750 after a bull run from $1,900 to a brief high of $2,900 following the locking-in of segregated witnesses (segwit).
Since then, volumes have considerably reduced to under $1 billion as the currency appears to be somewhat uncertain regarding its price direction.
Meanwhile, the second biggest digital currency, ethereum, has been moving in a straight line for quite a few days now, hanging around $230.
While its volumes have fallen to half a billion, down from an all-time high of $3.2 billion just last week when it reached trading volumes that were twice higher than bitcoin’s.
The two currencies may be simply consolidating after their bull and bear rollercoaster runs, but a more probable reason is market uncertainty as bitcoin is to undergo its first chain-split ever on the 1st of August at 12:20 UTC.
The currency will split into two coins, Bitcoin Cash (BCC), which follows Nakamoto’s vision of on-chain scaling, and the segwited Bitcoin Core chain, which is to retain the bitcoin brand and BTC ticker for now.
BCC has already begun trading in ViaBTC futures where the currency has increased from 1,582 CNY ($234) to around 3,600 CNY, worth just over $530.
Its trading volumes are decent at around $8 million for the past 24 hours, but of course no where near bitcoin’s trading volumes as the currency has not yet split.
Once it does, we will find out whether its current futures price is indicative, or whether the market values it higher or lower as the scalability decision is opened to all bitcoin holders.
BCC and BTC will probably go up and down dependent on the price value of the other, but the combined price should be higher, as it is currently with both coins worth more than bitcoin, or any other digital currency, ever has.
The reason is probably because the market would value the choice as the two currencies can more easily focus on their own roadmaps and aims rather than stagnating bitcoin through constant argument.
The above is backed by the experience of ETH and ETC which where valued higher in combination soon after the split, with both currencies then skyrocketing some months later.
As such, it may be the case the market is simply waiting for the historical day, perhaps unsure whether it should bull run or bear dive.
That probably applies to ethereum too as the currency may be affected by the split, either positively or negatively, dependent on how the events unfold as we detailed yesterday.
All eyes, therefore, are now on Bitcoin Cash, the newest, and yet the oldest, digital currency.