The cryptocurrency market witnessed an extraordinary upheaval in mid-November 2017 as Bitcoin Cash staged a dramatic rally that briefly propelled it past Ethereum to become the second most valuable digital currency by market capitalization. The surge came in the wake of the unexpected cancellation of the SegWit2x hard fork, a decision that sent shockwaves through the entire crypto ecosystem and triggered one of the most volatile trading weeks in Bitcoin history.
TL;DR
- Bitcoin Cash surged approximately 130% in just two days following the SegWit2x cancellation
- BCH briefly overtook Ethereum as the second-largest cryptocurrency by market cap, reaching roughly $25 billion
- Bitcoin dropped nearly 30% from its all-time high of $7,888, falling to $5,555 on Bitstamp
- BCH mining hashrate temporarily surpassed Bitcoin’s early on November 12
- The rally reversed sharply on November 13, with BCH plunging over 30% as Bitcoin recovered
The SegWit2x Cancellation That Started It All
On November 8, 2017, organizers of the controversial SegWit2x hard fork announced they were suspending their plan to increase Bitcoin’s block size. The upgrade, which had been championed as a compromise solution to Bitcoin’s long-standing scaling debate, was abandoned after failing to achieve sufficient consensus among developers, miners, and the broader community.
The initial market reaction was actually positive for Bitcoin. The price climbed to a record high near $7,888, as traders interpreted the cancellation as a resolution of a prolonged dispute that had created uncertainty for months. However, that optimism proved short-lived.
SegWit2x would have increased the capacity of the blocks in which transactions are processed, reducing competition among transactions and lowering fees. When the fork was called off, those who saw low transaction fees as critical to Bitcoin’s future began reallocating their holdings toward Bitcoin Cash, which already featured larger block sizes and consequently lower transaction costs.
Bitcoin Cash Stages a Historic Rally
The shift in capital was swift and dramatic. Bitcoin Cash, which had been created through a hard fork in early August 2017 and was initially regarded as something of a footnote in Bitcoin’s history, exploded in value. Over the course of just two days, BCH gained roughly 130%, reaching an all-time high just below $2,000 on Sunday, November 12.
At its peak, Bitcoin Cash’s total market value reached approximately $25 billion, briefly overtaking Ethereum’s market capitalization and claiming the number two spot among all cryptocurrencies. The achievement was remarkable for a coin that had existed for barely three months.
Perhaps even more significant than the price rally was the shift in mining power. According to data from CoinDesk and the tracking site Fork.lol, Bitcoin Cash’s hashrate — the total computational power dedicated to securing its network — surpassed Bitcoin’s early on Sunday, November 12, GMT. This was a development that few had anticipated and many found deeply alarming for the original Bitcoin network.
Chinese Influence and Geopolitical Dynamics
Noted cryptocurrency analyst Willy Woo described Bitcoin Cash as a strategic and geopolitical bet, pointing out that BCH was now heavily backed by Chinese traders and miners. The concentration of support from China’s mining community, which controls a significant share of global Bitcoin mining infrastructure, added a layer of geopolitical complexity to what might otherwise have been a straightforward market rotation.
The narrative around Bitcoin Cash had shifted from a technical debate about block sizes to a broader contest about the philosophical direction of cryptocurrency. Was Bitcoin meant to be a decentralized store of value with limited on-chain transaction capacity, or should it serve as a low-cost payment network capable of handling high transaction volumes?
Why This Matters
The events of November 2017 highlighted a fundamental tension in the cryptocurrency space that would continue to shape the industry for years to come. The SegWit2x cancellation and subsequent Bitcoin Cash rally demonstrated that governance disputes in decentralized networks can have immediate and dramatic market consequences. It also underscored the growing influence of mining communities — particularly in China — in determining the trajectory of major cryptocurrencies.
For altcoin investors, the episode served as both a cautionary tale and a validation. Bitcoin Cash’s meteoric rise and equally dramatic fall illustrated the extreme volatility that defined the 2017 crypto market, while also proving that alternative cryptocurrencies could challenge Bitcoin’s dominance, at least temporarily.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry significant risk. Always conduct your own research before making investment decisions.
bch overtaking eth in market cap was pure speculation driven by the segwit2x chaos
lasted about a week before reality set in and eth reclaimed its position
the market cap shake up was a warning about how fast things can shift in crypto