It's been nice two days in cryptocurrency market - Bitcoin got more than 80% of miners signaling SegWit, Ethereum got 34 new comapnies signed for EEA (Ethereum Enterprise Allience) among them Cisco and MasterCard. These two events drove the prices for a lot of cryptos up a little bit and it almost looked like the market is gonna catch a bullish trend from now on. Apparently we were wrong. Markets are bleeding again and in this short update I will try to explain why is that happening.
BIP91 is under 80% again
xbt.eu reporting 75.6% BIP91 support at 1AM by Greenwich time zone
The whole thing around Bitcoin scaling debate is not over yet! Even though we've recently recieved the early news about achieving more than 80% miners support signaling for BIP91, the decision hasn't been "locked in" yet. The lock in process takes 217 blocks and during that time the network has to have those 80%+ signaling for BIP91, if the number of miners supporting BIP91 gets under 80% the process is going to reset and we will have to wait again. In fact - that's exactly what is happening right now: only 75.6% of miners are signaling BIP91 (1AM Greenwich time zone) according to xbt.eu - that means we are still not finished with the locking phase. This fact affected the price a little bit making Bitcoin settle under 2300$. If the locking phase will not be finished as soon as possible, we would probably witness more price drops and continuos bearish trend for upcoming days.
Ethereum got it's own problem too
Source: coindesk.com
You might have also noticed a pretty steep fall of ETH's price hitting 200$ floor that followed after what we thought was bullish trend. Ethereum's price certainly has benefited from the new companies signing for EEA - it also made the volume of ETH rise to impresive 3B dollars. However - this evening a smart contract coding company Parity declared a loss of 150 000 of Ethereum (ca. 30 000 000$) because of the parity wallet breach. That is no major problem for Ethereum but it certainly has stopped it's promising up trend and because of that it might take some time for Ethereum to get back on it's bullish track.
Conclusion
The path leading to successful Bitcoin and successful Ethereum might be a little bit more complicated than it looked like. Still though - neither of those two events that I've written above about should be a big deal for cryptocurrency market. Yes - we are talking about things "not going so smooth as we expected", but still - we are slowly moving in the right direction. Bitcoin is definitelly going to get those 80% locked in for BIP91 to be implemented and Ethereum is going to recuperate from bad news soon just be patient, buy more coins if you've missed your chance before and HODL. We are almost there!
Every dip is an opportunity. Thanks for this article and the link to xbt.eu.
You are always welcome @drgonzo1969 follow me for more upcoming news! :)
That's pretty much my view as well.