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The price of Ethereum and Bitcoin drops again; Main factors for medium-term recovery

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The price of Ethereum and bitcoin has dropped over the past two days, the price of bitcoin rebounding beyond the $ 5700 mark and the price of the ether diving again under the area of ​​$ 300.

Although the price of bitcoin has risen since it dropped to $ 5,300 before the Bitcoin Gold fork, over the past 24 hours, the price of bitcoin has dropped from $ 5,767 to $ 5,680

As a bitcoin after the disappointing publication of Bitcoin Gold, Ethereum had to maintain its upward momentum in the medium term after the hard Byzantium fork. But, mainly affected by a series of minor corrections in the cryptocurrency market, Ether's price has struggled to surpass the $ 300 mark last week.

Recovery factors: BItcoin

The Bitcoin price trend has shown over the past week that the Bitcoin Gold fork has had a direct impact on the short-term trend of bitcoin. Experts, including renowned Bitcoin developer Jimmy Song, noted that before the Bitcoin Gold fork, a relatively large portion of users migrated their funds from Bitcoin wallets and traded to alternative cryptocurrencies (altcoins) to avoid the Bitcoin fork. Gold.

The majority of investors and traders sought to avoid the Bitcoin Gold fork because it lacked protection against replay before the fork, which is necessary for Bitcoin wallets and exchanges with Bitcoin users Gold on a 1: 1 report with bitcoin. But, even after the bifurcation, Bitcoin Gold's development team has not kept its promise and has not put in place any kind of replay protection.

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Therefore, portfolios like Trezor and Blockchain have not been able to provide support for deposits, withdrawals and exchanges of Bitcoin Gold.

Moreover, at this stage of development, it is difficult to justify whether Bitcoin Gold is a real cryptocurrency, because it lacks hash power, portfolios, minors and customers.

Analysts such as Bitfinexed, a popular cryptocurrency blogger, said:

As the bitcoin market picks up and restructures from the controversial bitcoin gold fork, it is likely that the price of bitcoin will rebound in the coming days, at least until the hard end SegWit2x Planned November 16 Several investors like Tuur Demeester have pointed out that a similar trend to that of Bitcoin Gold is expected around mid-November, as Bitcoin investors could potentially migrate to other altcoins to avoid the fork. .

The price of Ethereum remains below $ 300

Since early September, before the initial ban on the supply of coins and cryptocurrency by the Chinese government, the price of Ether is struggling to stay in the region of $ 300, despite a strong Ethereum optimism like the Byzantium hard fork and the extensibility solution Vitalik Buterin from the co-founder of Ethereum, Plasma.

As demonstrated in both price charts above, the price trend of Ether is often correlated with the short-term performance of bitcoin. Thus, during certain periods when the price of bitcoin corrects, the price of the ether should fall by a similar margin.

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But, the adoption of Ethereum is an important indicator of the medium and long-term price trend of Ether. Earlier this week, Blockchain, the second most popular bitcoin wallet behind Coinbase, announced the integration of Ethereum into its mobile wallet, the most widely used bitcoin mobile wallet on the market.

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