Bitcoin is on a tear. The world’s largest cryptocurrency soared to within striking distance of $8,000 on November 16, 2017, touching an all-time high of $7,998.40 after a week of extraordinary volatility that saw prices swing from $5,500 to nearly $8,000 in just six days.
The catalyst behind the dramatic price action was the collapse of the controversial SegWit2x hard fork, which had been scheduled to activate at block 494,784 on November 16. On November 8, Mike Belshe, CEO of BitGo, announced the fork’s cancellation in a brief mailing list post, citing a lack of community consensus and a desire to keep the Bitcoin community united.
TL;DR
- Bitcoin hit an all-time high of $7,998.40, rising 45% from the weekend low of $5,500
- SegWit2x hard fork was officially cancelled on November 8 after failing to achieve community consensus
- Bitcoin’s market capitalization surged from $92 billion to $133.5 billion, adding $41 billion in six days
- Transaction fees on the Bitcoin network spiked to approximately $15 per transaction
- Coinbase warned that a small group of miners might still attempt the fork
From Fork Fears to Record Highs
The SegWit2x proposal was born from the New York Agreement, a compromise forged by major Bitcoin companies including Bitmain, Coinbase, and BitPay. The plan called for doubling Bitcoin’s block size from 1MB to 2MB within six months of SegWit activation, with the goal of improving transaction throughput and reducing fees.
At its peak, over 80% of mining hash rate signaled support for the upgrade. Major exchanges like Bitfinex, ShapeShift, and Coinbase announced they would support both versions of Bitcoin in the event of a split.
However, Bitcoin Core developers mounted fierce opposition. They argued that SegWit2x lacked critical replay protection — meaning transactions on one chain could be replayed on the other, potentially causing regular users to lose funds. They also criticized the closed-door nature of the New York Agreement, arguing that a small group of executives should not dictate protocol changes for a decentralized network.
The Fee Crisis Deepens
Even as Bitcoin celebrated new highs, the underlying scaling problems remained painfully visible. The average transaction fee on the Bitcoin network had already surpassed $6 on November 8 when the fork was cancelled. By November 16, fees had ballooned to approximately $15 per transaction, rendering small payments economically unfeasible.
For context, sending a $10 payment on the Bitcoin network would cost more in fees than the transaction itself, making services like PayPal, credit cards, and debit cards significantly cheaper for everyday purchases.
Market Reaction Across Crypto
The SegWit2x cancellation sent shockwaves through the entire cryptocurrency market. On Kraken, daily trading volume reached $262 million across all markets. Bitcoin led with $127 million in volume and a 5.91% gain to $7,721. Ethereum traded at $325.40 with $34 million in volume, while XRP surged 17.6% to $0.2448 on $26.5 million in volume.
Litecoin gained 11.23% to $71.06, Zcash climbed 5.55% to $299.90, and EOS rose 6.02% to $1.76. The one notable laggard was Bitcoin Cash, which fell 14.6% to $1,010.16 on $50.9 million in Kraken volume after its own spectacular rally in the preceding days.
What Happens Next
Despite the official cancellation, Coinbase issued a warning on November 16 that a small number of miners could still attempt to proceed with the fork. David Farmer, Coinbase’s director of communications, noted that if sufficient mining power supported the upgrade, a split could still occur, creating a new cryptocurrency called “bitcoin2x” that holders would receive for free.
Coinbase disabled Bitcoin send and receive functionality at 2 a.m. PT on Friday as a precaution, with plans to halt buying and selling an hour before any potential fork window. The exchange identified two scenarios: the most likely being that insufficient miner support renders the new network unusable, or alternatively, that enough miners participate to create a viable competing chain.
Why This Matters
The SegWit2x saga represents a defining moment in Bitcoin’s governance evolution. The cancellation demonstrated that no single group — regardless of hash power or corporate backing — can force protocol changes without genuine community consensus. Bitcoin emerged from the crisis stronger, surging past $7,900 with a market capitalization exceeding $131 billion. However, the unresolved scaling debate and escalating transaction fees suggest that the fundamental tensions between decentralization, security, and throughput are far from settled. For investors and users alike, the events of November 2017 underscore both the resilience of Bitcoin’s consensus mechanism and the urgent need for sustainable scaling solutions.
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.