The Bitcoin price crashed from $252 to $161 on the popular trading platform BitFinex. The volatile dump was quickly reflected in other Bitcoin exchanges as well, including BitStamp. The price, however, has recovered to $233 at press time, but has still left many conspiracy theories behind. Let’s check them out:
The Bitcoin Fork Effect
The division of the Bitcoin community over the recent fork has initiated an ugly war on social media circles. An impact of such a negative media coverage have been utterly visible on multiple exchange platforms, each demonstrating a drop in Bitcoin price coincided with the launch of Bitcoin’s forked client — Bitcoin XT.
As miners begin shifting to the new platform, it would simply create a competition between Bitcoin Core client and its own cryptocurrency. Traders might be fearing this scenario already, especially after reports of an increased traction in XT’s adoption. The fear is: that a new and improved client could hurt the current Bitcoin adoption; hence, the price drop.
There are, however, reports that the Bitcoin XT’s adoption is sluggish at this point of time.
BitFinex is known for its weak handling