Chinese Virtual Currency Ban
Since the big hoo-hah last week, the BTC-USD market has taken the hit and recovered to something around $4000. This is almost a complete recovery to the sell-off after the peak of a little over $4900 on 2 September. It now seems that all forms of trading in BTC along with all other virtual coins soon will be banned in China. The Chinese appear to be attempting to stop all trading they cannot control, even peer-to-peer and OTC exchanges. They also appear to be attempting to stop Chinese trading outside the country, so that should make it a total blockage on virtual currencies within China as well as into and out of the country.
As we expected last week, the crackdown did not have a lasting effect on the BTC-USD market. I suspect that the bulk of the large chinese BTC traders managed to get their control outside the country (if it was not already there) before the authorities could block their activities. The rest of the small dealers in China may have taken it on the chin, but the market does not make any allowance for that and the authorities don’t care.
Hard Fork Next Version
Now, there is another hoo-hah brewing about yet another hard fork that should occur in November. This will be to try to separate Segwit2x from BTC. I see this as a probable repetition of what happened in August. In essence, another attempt by outsiders to get something for nothing. I expect that the market reaction will be about the same. There is a lot of inertia in the market there that will keep the market stable over such attempted disturbances. The longer the BTC market remains active and the amount of BTC in trade continues to grow, the more difficult it will be for someone to disturb the market. There are many holders out there who do not want to rock the boat, and more importantly, endanger their USD profits.