Bitcoin investors are getting jittery ahead of the adoption of a solution to the currency's scaling issue. Its price moved below $2,000, a drop of 34% from its all-time-high of $3,000 in mid-June, on July 16, 2017. It is currently hovering around the $2,000 mark.

Bitcoin​ was in the $2,500-$2,600 range from June 25 until July 9. Since July 10, it dropped and started on a downward trend and was at $2,200 levels on July 14. It slid further to below $2,000 in the next 24 hours pulling its market capitalization down to $36.7 billion. This is the first time since May 19, 2017 that Bitcoin is traded at sub $2,000 levels, although it’s still up 100% year-to-date.

Bitcoin began the year below $1,000. However, in a short span of six months, it surged by 200% driven by optimism in the cryptocurrency​ space, investor enthusiasm, and the positive stances of regulators and agencies around the world. It’s not just Bitcoin; most popular cryptocurrencies, including Ethereum​, Ripple, Dash, Ethereum Classic, Monero and others, have seen steep corrections. The result has been a decline in overall market capitalization – from $114 billion a month ago to around $66 billion. (See also: Ripple Is Up 3800%: Should You Be Buying?)


While fundamentally nothing has changed around Bitcoin, the fear of a hard fork or split is causing nervousness among investors and traders. Bobby Ong, co-founder of CoinGecko, told Investopedia, “Bitcoin's price will be volatile as we enter a period of extreme uncertainty in Bitcoin's future direction. Bitcoin miners will start indicating if they will support SegWit2x from July 21 and if it appears that the requisite 80% miner support will achieved, traders will be relieved and this will push the Bitcoin price upwards. However, if that doesn't happen, expect prices to take å plunge as we brace towards the August 1 deadline where there is a high risk of Bitcoin splitting into several chains.”

Bitcoin is approaching two crucial dates. The first being July 21, when signaling for SegWit 2x begins, and the other important day is August 1, when BIP148, another scaling solution, will be triggered. Amid the technical war, the price is expected to remain volatile with a downward bias in the coming days. (See also: Bitcoin Investors Should Know These Dates in the Civil War)

*Based on data from at 4am ET July 17, 2017




Want to learn how to invest?

Get a free 10 week email series that will teach you how to start investing.

Delivered twice a week, straight to your inbox.