Bitcoin Cash Price Loses 39% in Value in Compared to Bitcoin
As was to be expected, the Bitcoin Cash price pump has completely run out of steam by the look of things. With the inflated altcoin price dropping from $2,800 to $1,162 over the past 36 hours, it is evident all good things come to an end. People made a lot of good money, yet Bitcoin still reigns supreme. It will be interesting to see what happens to the Bitcoin price in the next few hours. So far, going below $1,000 seems to be the most likely outcome.
Bitcoin Cash Price Takes a Backseat
Everyone knew the inflated Bitcoin Cash price would not be sustained for an extended period of time. Although things have looked good for most of last week and the early part of the weekend, things are slowly returning back to normal. The peak of $2,800 a few days ago was pretty spectacular, but it is evident people have had their fun with altcoin for now. Traders are once again pulling money out of BCH and putting it into other currencies, for the time being.
Over the past 24 hours, we have seen very erratic Bitcoin Cash price movements. With the value flipping between $1,077 and $1,820, there was a lot of good money to be made by selling high and buying the dip. A total of five different attempts has been made to successfully surpass $1,900 again, but none of them succeeded whatsoever. None of this is entirely unexpected either, as Bitcoin Cash still has to prove its value to the rest of the world.
It is unclear what will happen next with the Bitcoin Cash price, though. A lot of people accurately predicted this momentum would turn against BCH sooner or later. The pump has run for a much longer period than most people had expected, but it seems now is the time for consolidation and the sharp correction it deserves. No one knows where the current bottom is for BCH, but rest assured there are plenty of people who already bailed. With the network losing a lot of hashpower, transaction confirmations are delayed by multiple hours.
It is also obvious the Bitcoin Cash trading volume is also drying up pretty quickly. Although there was still well over $5.4bn worth of volume in the past 24 hours, it pales in comparison to the $8bn+ we have seen over the past few days. The party’s over for a lot of traders, and people can’t get money from their regular wallet to exchanges quick enough until the network stabilizes again. When that will happen exactly, remains anybody’s guess for now.
As has been the case for virtually all week, Bithumb is still the biggest exchange when it comes to Bitcoin Cash trading. With over $1.4bn in volume, they are responsible for around one in four traders. Bittrex and Bitfinex are in the top three as well, although they both value BCH a lot lower compared to Bithumb. It is an interesting situation to keep an eye on over the next few hours and days, to say the very least.
For anyone who expected Bitcoin Cash to overtake Bitcoin this weekend, reality is setting in pretty quickly as we speak. It is obvious this altcoin doesn’t even compare to Bitcoin in terms of traction, adoption, or investor appeal. It is a great speculative asset, but not a store of value by any means. There is no natural growth either, as this currency saw its value increased eightfold over the course of five days thanks to a few wealthy speculators. Bitcoin Cash certainly has value, but this recent trend shows it is certainly not in the $2,000+ range.