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The price of Bitcoin recovers to $ 5,780 after a long week of slowdown

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After a week of subsidence, the bitcoin price recovered at $ 5,780. The launch of Bitcoin Gold, which did not meet traders' expectations, probably prompted investors to reallocate their bitcoin funds.

The Bitcoin gold caused the Bitcoin price to decline, began to recover

Like Cryptocoinsnews previously reported, the execution of Bitcoin Gold fork probably led bitcoin investors to launch a short-term sale, to distribute their funds through other crypto-alternatives (altcoins) like Ethereum and Litecoin to avoid Bitcoin Gold hard fork.

Earlier this week, the Bittrex Development Team, the third largest transaction-volume cryptocurrency behind Bitfinex and Bithumb, revealed that the Bitcoin Gold codebase is incomplete, untested and unaudited. As a result, Bittrex's development team has stated that stock exchange and purse platforms will not be able to credit Bitcoin Gold users unless strong replay protection is available. set up.

"Currently, the information and code base presented by the Bitcoin Gold team are not in a functional state and Bittrex will not engage to open a Bitcoin Gold trading market" said the Bittrex team.

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More importantly, Bittrex pointed out that crediting investors with Bitcoin Gold at this stage of development would endanger existing bitcoins, which could lead to bigger problems in the short term. The Bittrex team explained:

"When we plan to add tokens to the Bittrex exchange, we look at the risks involved.Bitcoin Gold does not meet our security criteria for our users. Bittrex exchange Bitcoin wallet is also a big disruptive company that requires more than 24 hours of preparation (Bitcoin deposits and withdrawals are also suspended during this time) and should not be taken lightly. "

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The majority of investors probably did not want to deal with the Bitcoin Gold fork because of these circumstances, surrounding the lack of replay protection and the exchange of warnings such as Bittrex offered with regard to security and the preparation of the Bitcoin Gold code base.

As a result, over the past four days, the bitcoin price has remained below the $ 5,500 mark and has even fallen below the $ 5,300 area at some point.

Where does the Bitcoin price come from?

Analysts, including the prominent Bitcoins investor Tuur Demeester, have stated that a similar trend can be expected before the SegWit2x rigid fork of November 16. In the medium term, the SegWIt2x rigid fork, if continued as expected, could negatively affect bitcoin prices, possibly to a greater magnitude than Bitcoin Gold.

But in terms of volatility, liquidity, regulation and demand from institutional investors, bitcoin is in an optimal position to lead another recovery. Already, some of the tightly regulated options, futures and bitcoin derivatives markets like LedgerX have begun to record substantially higher trading volumes. Billionaire investors, including Mike Novogratz, also revealed that a "flock of institutional investors" was entering the cryptocurrency market.

Over the next few weeks, at least until the difficult period of SegWit2x, investors could expect a strong recovery of bitcoin, once the $ 6,000 will be broken in the near term.

Image from Shutterstock.

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