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.