The cryptocurrency market in late October 2017 finds itself at a peculiar crossroads. Bitcoin has just surged past $6,150, setting fresh all-time highs and dominating the conversation, yet the broader altcoin market tells a more nuanced story of divergence, opportunity, and uncertainty.
TL;DR
- Bitcoin Gold fork occurred on October 24 at block 491,407, creating a new cryptocurrency from the original Bitcoin blockchain
- Bitcoin dominates the market with a $102.5 billion market cap, up 48% in October alone and over 500% year-to-date
- Bitcoin Cash has rallied back toward $500 after being largely forgotten since its August debut
- Ethereum holds steady at $305 while the broader altcoin market struggles to keep pace with Bitcoin’s meteoric rise
- Japan and South Korea now account for over 60% of global Bitcoin trading volume as Chinese capital relocates
The Bitcoin Gold Aftermath: Free Money or Market Distraction?
Five days ago, the Bitcoin network underwent its second major fork of 2017. At block 491,407 on October 24, Bitcoin Gold (BTG) was born — a new cryptocurrency that modifies Bitcoin’s mining algorithm to be less resource-intensive. Unlike the August Bitcoin Cash fork, which carried significant ideological weight about block size, Bitcoin Gold’s stated mission is more technical: democratizing mining by making it accessible to everyday hardware rather than specialized ASIC miners.
The fork’s impact on the market has been fascinating to watch. In the weeks leading up to October 24, investors piled into Bitcoin to qualify for the “free” Bitcoin Gold distribution. BTC surged from roughly $4,000 at the start of October to over $6,147 by October 21 — a breathtaking 50% rally in just three weeks. The logic was straightforward: hold Bitcoin at the fork snapshot, receive an equal amount of Bitcoin Gold. It was the same dynamic that drove Bitcoin Cash demand in August, and the market responded with similar enthusiasm.
But here’s where the story diverges. Bitcoin Gold has struggled to capture sustained market interest. Within days of the fork, trading was marred by delays on major exchanges, and the project faced criticism for its relatively centralized development team and lack of clear replay protection. As one analyst noted, Bitcoin Gold is “starting to be forgotten — as Bitcoin Cash was” immediately after its own launch.
Bitcoin Cash Stages a Comeback
Speaking of Bitcoin Cash, the original fork coin has staged an impressive October rally of its own. After languishing well below its debut highs through September and early October, BCH has surged back toward the $450 mark, with CoinMarketCap data showing a 7.8% gain in just the last 24 hours and a remarkable 35.3% increase over the past week as of October 29. With a market cap exceeding $7.5 billion, Bitcoin Cash now sits comfortably as the fourth-largest cryptocurrency by market capitalization.
The BCH rally appears driven by a combination of factors: renewed interest in fork-related assets following the Bitcoin Gold event, growing adoption in Japan where Bitcoin Cash is accepted by an increasing number of merchants, and speculation about an upcoming hard fork that would address Bitcoin Cash’s controversial difficulty adjustment algorithm. For a coin that many dismissed as a failed experiment just weeks ago, the resurgence is a powerful reminder that the crypto market has a habit of surprising its skeptics.
Altcoins Left Behind in Bitcoin’s Wake
Perhaps the most significant development for altcoin investors in October 2017 is the growing divergence between Bitcoin and the broader market. While BTC has surged nearly 50% this month, most altcoins have either moved sideways or declined against both BTC and USD pairs. The total cryptocurrency market cap has risen from $146 billion to approximately $182 billion, but almost all of that $36 billion increase is attributable to Bitcoin’s price appreciation.
Ethereum, the second-largest cryptocurrency, has held relatively steady at around $305 — a respectable price but essentially flat compared to Bitcoin’s explosive growth. XRP sits at $0.20, Litecoin at $57, and most mid-cap altcoins have seen modest single-digit percentage moves. The pattern is clear: capital is consolidating into Bitcoin, driven by the fork dynamics and growing mainstream institutional interest.
The Asian Factor: Japan and Korea Take the Lead
One of the most important structural shifts in the cryptocurrency market is playing out this month. Following China’s ban on cryptocurrency exchanges in September, trading volume has migrated dramatically eastward. Japanese yen now accounts for approximately 57% of all Bitcoin trading volume, according to CryptoCompare data, while the South Korean won contributes another significant chunk. Together with the US dollar, these three currencies represent nearly 95% of global Bitcoin trading.
The implications for altcoins are significant. Japan’s Financial Services Agency has officially recognized cryptocurrency exchanges, creating a regulated environment that encourages both retail and institutional participation. At least 19 former Chinese exchange operators have applied for Japanese licenses. This regulatory clarity is boosting confidence across the entire crypto market, but the benefits are flowing disproportionately to the most liquid and recognized assets — primarily Bitcoin.
Why This Matters
The October 2017 market dynamics reveal a fundamental tension in the cryptocurrency ecosystem. On one hand, the rapid succession of Bitcoin forks is creating new assets and generating enormous speculative excitement. On the other hand, each fork raises legitimate questions about Bitcoin’s long-term identity — questions that could either strengthen or undermine confidence in the entire market.
For altcoin investors, the current environment demands patience and selectivity. The flood of capital into Bitcoin is temporary in the sense that fork-related demand will eventually subside. When it does, history suggests that capital will rotate back into quality altcoin projects with strong fundamentals. Ethereum’s upcoming protocol upgrades, including discussions about a hybrid proof-of-stake system at the recent Core Developer Meeting #27, point to a maturing technology stack that could reignite interest in the broader altcoin market.
The wildcard remains regulation. South Korea’s central bank has declared that Bitcoin will be treated as a commodity rather than a currency — a framework that could set precedents across Asia. Russia is simultaneously blocking foreign exchanges while promising domestic ICO regulation by mid-2018. And in the United States, the CFTC’s growing engagement with cryptocurrency derivatives suggests that institutional infrastructure is being built even as skeptical voices like JPMorgan’s Jamie Dimon and billionaire Warren Buffett continue to dismiss the entire asset class.
For now, the altcoin market waits in Bitcoin’s considerable shadow. But if history is any guide, the next rotation is never far away.
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.
btg was such an obvious cash grab. equihash was supposed to be asic resistant and what happened. the fork was pure speculation fueled by free money mentality
ngl i claimed my btg and dumped it immediately. free money is free money, not gonna pretend i had principles in 2017
equihash lasted 6 months before asics showed up. every asic resistant algorithm eventually isnt
stoploss_wrecked equihash asic resistance is an oxymoron. every algorithm gets asics eventually, the question is timeline not if
btg got 51% attacked twice within a year of launch. equihash asic resistance lasted about 6 months. the whole thing was doomed from the start
the second 51% attack was the nail in the coffin. after that no exchange wanted to touch btg with a ten foot pole
BTG got 51pct attacked twice within a year. equihash ASIC resistance lasted maybe 6 months. the whole fork was idealism vs economics and economics won
Japan and Korea at 60pct of volume after the china ban. liquidity moved east and never came back west until 2020
japan and korea at 60% of volume in october 2017. the china ban just pushed trading east, it didnt kill anything. everyone who said crypto was done after the ban looks silly now
kimchi premium was absolutely insane around then. btc trading at 20%+ over spot on korean exchanges. good luck getting fiat out though
Kim T. the kimchi premium was free money on paper but getting KRW out of korea was nearly impossible. the premium existed because of capital controls
kimchi premium was 20% but arbitrage was nearly impossible. korean capital controls made it a one-way trade. you could buy but getting fiat out was the real challenge
Yuna C. the kimchi premium at 20% with KRW capital controls made arbitrage impossible. you could buy but getting money out was the real wall
Min-su P. kimchi premium at 20pct was free money on paper but KRW capital controls made it a trap. you could buy BTC cheaper in KRW but getting fiat out of korea was the wall
Hiroshi Y. japan and korea picked up the slack within weeks. the china ban moved liquidity, it never destroyed it
BTG was supposed to be GPU-friendly mining for the little guy. instead it got instamined by a few pools and dumped immediately. the idealism behind that fork aged terribly
mikko_h the replay protection on BTG was basically non-existent at launch too. people lost real BTC because of poor implementation, not just the idealism failing
fork_witness_ BTG replay protection being non-existent at launch was genuinely dangerous. people lost real BTC because the implementation was rushed
mikko_h the replay protection issue was worse than people remember. a friend sent BTC to a BTG address pre-replay-protection patch and lost access for weeks
Japan and Korea doing 60% of volume in October 2017 was the real story. China had just banned exchanges and the trading just moved next door
Japan and Korea at 60% of volume after china exited was the real story. liquidity moved east and never really came back west until 2020
BTC at $6,150 in October 2017 felt like the top of the world. crazy to think it was just warming up for the December run to 20k
BTG got 51% attacked twice within a year. equihash ASIC resistance lasted 6 months. the whole fork was a solution looking for a problem
Japan and Korea at 60% of global volume post-china ban. the liquidity moved east overnight. everyone who called the end of crypto in 2017 forgot capital is fluid
japan_route_ china ban moved liquidity east within weeks. japan and korea at 60pct of volume proved bans dont kill markets they relocate them
BTG got 51pct attacked twice and equihash asic resistance lasted 6 months. the whole fork was idealism crushed by economics. free money forks mostly are