gipsy: [16] In the 16th century, it was widely thought that the Romany people originated in Egypt. They were therefore called gipcyans or gipsens, which was simply an alteration of Egyptian. The modern form of the word developed in the 17th century (perhaps influenced by Latin Aegyptius). In American English the spelling gypsy is generally preferred. (Spanish gitano ‘gipsy’, incidentally, has a similar origin.) => egyptian
alternative spelling of Gypsy. OED gives it precedence, and it is the main form for the word's entry in Century Dictionary, but Fowler writes that "the first y is highly significant, reminding us that Gypsy means Egyptian ...."
