Bitcoin prices soar more than $300 as fears over currency split ease
Investing.com - Bitcoin prices rose sharply on Tuesday, extending their recovery from the lowest level in more than two months amid easing concern over the future of the digital coin.
Bitcoin was at $2,302.10 on the U.S.-based GDAX exchange operated by Coinbase by 8:30AM ET (1230GMT), up about 15.8%, or $313.30.
Prices spiked higher amid news that about 43% of Bitcoin's mining power, including AntPool, BitClub, Bixin, BTC.com and BitFury, have signaled support for the scaling proposal Segwit2x.
The news came as a positive surprise to traders since miners were not expected to signal their intentions until July 21. The final vote on the proposal is due on August 1.
The cryptocurrency plunged from above $2,000 to as low as $1,758.20 on Sunday, a level not seen since May 16, as investors remained wary of initiating large positions ahead of the controversial scaling proposal, which has threatened to divide the cryptocurrency.
If the majority of developers fail to agree on the proposal, the cryptocurrency could split. If that happens, Coinbase's GDAX exchange said in a blog post last week the exchange "will temporarily suspend the deposit and withdrawal of bitcoin on GDAX and may pause the trading of bitcoin as well."
Bitcoin prices remain well off all-time highs close to the $3,000-level touched last month. Despite recent losses, it is still up nearly 60% since the start of the year.
Meanwhile, Ethereum, Bitcoin's closest rival in terms of market cap, was up 18.4%, or $29.90, to $192.72 in early trade. It dropped to $130.26 on Sunday, its lowest level in more than a month.
Ethereum notched its fourth weekly loss in a row last week amid concern the cryptocurrency faces a period of correction after surging to record-highs.
Prices are down almost 50% since peaking at an all-time high close to the $400-level in mid-June, but still up about 1,800% year-to-date.
Other prominent cryptocurrencies such as Litecoin, Ripple and Dash also traded higher.
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