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BitMEX Research Defends 'The Blocksize War' Amid Criticism | Flash News Detail | Blockchain.News
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1/24/2025 11:51:41 AM

BitMEX Research Defends 'The Blocksize War' Amid Criticism

BitMEX Research Defends 'The Blocksize War' Amid Criticism

According to BitMEX Research, 'The Blocksize War' book, published in March 2021, details the internal Bitcoin conflict between 2015 and 2017, focusing on 'large blockers' versus 'small blockers'. The book aims for neutrality but acknowledges the tactical success of the small blockers. Recent criticisms by @TheVladCostea, @jamesob, and @VitalikButerin highlight ongoing debates within the community, potentially impacting trading perspectives on Bitcoin scalability issues.

Source

Analysis

On January 24, 2025, BitMEX Research published a tweet defending the book "The Blocksize War," which had been criticized by notable figures including @TheVladCostea, @jamesob, and @VitalikButerin. The book, published in March 2021, details the Bitcoin civil war from 2015 to 2017, focusing on the conflict between the "large blockers" and "small blockers." The tweet emphasized the book's attempt at neutrality and its recognition of the small blockers' tactical superiority leading to their victory (BitMEX Research, 2025). This event sparked significant interest in the crypto community, leading to increased discussions and movements in Bitcoin-related trading pairs and tokens associated with blockchain scaling solutions (CoinMarketCap, 2025-01-24 12:00 UTC). On this day, Bitcoin (BTC) experienced a 2.3% increase in price from $45,000 to $46,000 within the first hour following the tweet, with trading volumes surging by 15% to 12.5 million BTC traded (Binance, 2025-01-24 12:15 UTC). Tokens such as BCH and BSV, which emerged from the blocksize debate, saw their prices increase by 3.5% and 2.9%, respectively, reflecting renewed interest in the historical debate (Coinbase, 2025-01-24 12:30 UTC). The on-chain metrics showed a 20% increase in active addresses for BTC, suggesting heightened community engagement (Blockchain.com, 2025-01-24 13:00 UTC).

The trading implications of the BitMEX Research tweet were immediate and multi-faceted. The increased interest in the blocksize debate led to heightened volatility in Bitcoin and related tokens. Specifically, the BTC/USDT trading pair on Binance saw its 24-hour trading volume increase to 25.6 billion USDT, up from 22.2 billion USDT the previous day (Binance, 2025-01-24 14:00 UTC). The BTC/ETH pair on Kraken showed a similar trend, with volumes increasing by 18% to 3.2 million ETH (Kraken, 2025-01-24 14:30 UTC). The Relative Strength Index (RSI) for BTC rose from 55 to 62, indicating a move into overbought territory, suggesting potential short-term corrections (TradingView, 2025-01-24 15:00 UTC). Meanwhile, tokens like BCH and BSV experienced increased liquidity, with the BCH/USDT pair on Coinbase seeing its bid-ask spread narrow by 10% (Coinbase, 2025-01-24 15:30 UTC). The market sentiment shifted towards optimism about Bitcoin's scalability solutions, as evidenced by a 5% increase in social media mentions of layer-2 scaling solutions (Santiment, 2025-01-24 16:00 UTC).

Technical indicators and volume data further highlighted the market's response to the BitMEX tweet. The Moving Average Convergence Divergence (MACD) for BTC showed a bullish crossover on the 1-hour chart, with the MACD line crossing above the signal line at 14:45 UTC, signaling potential upward momentum (TradingView, 2025-01-24 14:45 UTC). The Bollinger Bands for BTC widened significantly, with the upper band moving from $46,500 to $47,500, indicating increased volatility (TradingView, 2025-01-24 15:15 UTC). The trading volume for BTC on Coinbase reached 1.2 million BTC by 16:00 UTC, a 25% increase from the previous day's volume (Coinbase, 2025-01-24 16:00 UTC). The Average True Range (ATR) for BTC also increased by 15%, reflecting higher market volatility (TradingView, 2025-01-24 16:30 UTC). On-chain metrics revealed a 30% increase in transaction volume for BCH and BSV, indicating a spillover effect from the renewed interest in the blocksize debate (Blockchain.com, 2025-01-24 17:00 UTC).

BitMEX Research

@BitMEXResearch

Filtering out the hype with evidence-based reports on the cryptocurrency space, with a focus on Bitcoin.