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The Golden Fork, Xapo Unlock, China, and Bitcoin Replacing Banks

October 1, 2017 at 17:36 by Daniel Green

Bitcoin has gradually coasted upward from the $3,552 weekly low, with a new $4,349 weekly high being achieved just yesterday. The general impression appears to be that government regulation, and by extension the activities of regulatory agencies, only influence price movement and momentum in the short-term.

Preparations for the golden fork are currently underway, although there could be more to this event then meets the eye. Furthermore, SegWit usage has managed to rise up to 7%. However, despite the increased adoption, there were 19,000 unconfirmed bitcoin transactions still waiting on miners 24 hours prior, and the figure has now risen up again to 17,000 total, after only a short period of being below 3,000 unconfirmed transfers. Median confirmation times have plateaued, while the mempool has started to spike upward. In a somewhat similar fashion, the bitcoin hash rate is also showing no signs of slowing down any time soon.

Bitcoin cash on the other hand has stumbled in price, with some speculating that the recent Xapo unlock, might be the main source of the drop in price. Regardless, the spin-off currency looks like it might have found a bottom, and we may be in for some sideways action, if trading volume picks up in the next few days.

China’s market remains vibrant, even amidst the severe regulation and prior interventions of it’s many government agencies. New legislation is to be enacted on October 1, and all crypto currencies and assets, are going to be legally perceived as virtual property. Interestingly enough, BTCC and ViaBTC were shut down today, but Huobi and OKCoin have been allowed to operate until October’s end. Many expect the two juggernaut exchanges to continue with service, once this “probationary period” has come to pass.

The US government may soon start pressing for comparable legislation as well, at least according to articles from Coindesk and the Merkle. Keith Noreika, who is leading the Office of the Comptroller of the Currency, has spoken on a possible national licensing program for bitcoin businesses. There has even been talk of legally adhering to bitcoin exchanges as if they were banking institutions.

Mainstream media has also begun to cover this new crypto regulatory wave, which has managed to permeate across multiple jurisdictions and countries. The Wall Street Journal seems to be leading the charge, and in a recent article, pointed out numerous examples of comparable licensing practices in both Japan and South Korea.

There has been nothing but growth since the $3,552 weekly low was realized on September 23, in what amounts to a series of markups, with minor temporary reversals along the way. The last correction touched down to $4,019 daily low on September 29 (GMT 04:00), and was followed by a run-up to the new $4,226 daily high. Trading ensued without the ascending trend breaking, and at the time of writing, the price of bitcoin was getting ever so closer to $4,300.

If you have any questions and comments on bitcoin today, use the form below to reply.

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