Bitcoin: trade the fork out of it

Swissquote remains bullish on Bitcoin, and we target $2500 for one bitcoin in the short-run. The company considers a Bitcoin split into two currencies as unlikely.

Bitcoin faces a big day on Tuesday, the 1st of August. Due to some technical complications, the digital currency’s computer-code will on that date be modified: it’s called a fork.

What the fork? Well, like Brexit, it can be soft or hard. A soft fork means business as usual, no significant changes in trading or in operations by miners, wallets and merchants. A hard fork, however, means that historic transactions will be more difficult to trade on. Indeed, the hard fork’s worst case is that the currency would be split into two currencies. (This is what happened to another digital currency, Ethereum, which now consists of Ethereum and Ethereum Classic.)

At this stage, markets believe the soft fork will win, and so do we.

Yann Quelenn - Market Analyst - Swissquote