The proposed split later this month is definitely a major factor that is pushing the Bitcoin price up. As at the time of this writing, the Bitcoin price has almost reached $5000. Going by about $500 added to its price in two days this week, reaching the $5000 all time high seems like nothing but just a step.
However, while that seems like good news for many Bitcoin enthusiasts, those in the altcoin camp are not really happy. Or so it seems.
Panic selling Altcoins
Though the head of an altcoin whose volume recorded a spike at the same time differs, many people have been panic selling their altcoins for Bitcoin reportedly for the Bitcoin Gold and Segwit2x forks.
ADK’s Ricardo Badoer notes that credible altcoin projects need not worry every time the Bitcoin price rises. He adds that the ability of an altcoin to apply the right strategy in their business approach should be key to always give them a clear picture of what they want and how to work towards it.
The evidence that some users have been shorting alts to get the Bitcoin Gold airdrop is getting stronger. Others reportedly sell at a loss to get themselves ready for what is to come as Bitcoin price continue its appreciation.
The fact that, in some cases, users are selling altcoins despite knowing full well that some of them are hugely undervalued now points to a planned buyback in a couple days at a reduced rate. That is if the rising price of Bitcoin stalls for several altcoins to regain some strength. Otherwise, the alternative currencies’ bleeding may continue for as long as Bitcoin is doing well.
It is clear that once - and when - its price does hit $5,000, the media will take a different twist to Bitcoin’s rise. This could make it pick up in new markets and the publicity generated by the spike will push the price a little higher.
Herd is coming
Unless the effect of the October 25 fork hurts the market really bad, the uptake in the price of Bitcoin will keep on moving. The words of analysts like hedge fund legend, Mike Novogratz, who describes Bitcoin as a symbol of decentralized revolution and digital gold with a store of value, add credence to this view.
Novogratz’s take in an interview with CNBC that Bitcoin could touch the $10,000 price mark between now and August 2018 did not come as a surprise.
“The one thing I’ve realized recently is I can hear the herd coming. I was just in San Francisco with a few big institution investors, they are still a ways away but they are coming. Lots of funds are being raised. I’m pretty confident to say it is going higher. You know, the hard part of this mania - I think this would be a real mania - is we have to have a lot of imagination on where things could go. So often we set ourselves our own limitation by putting a price level on it. It would not surprise me if in the next six to ten months, we are over $10000.”
Meanwhile, the financial analyst Tom Lee is making his case for a $25,000 Bitcoin.