The war for the future of Bitcoin Cash (BCH) has crashed the whole cryptocurrency market, and the question is how much more blood will be spilled. In the past 48 hours, a couple of whales have transferred massive amounts of Bitcoin (BTC) from their wallets, as if preparing for the big move. No one knows which direction the market is heading, but the sentiment is mostly bearish.
We still don’t know which Bitcoin Cash hard fork will emerge as the winner of this battle, even though ABC is dominating the hash front right now. Before the hard fork, many exchanges sent a notice informing users that BCH deposits and withdrawals are suspended because of the “network update.”
Bitcoin Cash ABC vs SV
After the hard fork on November 15, BCH ABC’s price increased sharply. The price rise was followed by a significant jump in trading volume the next day. At exactly midnight between November 15 and 16, the trading volume went from around $28 million to $40 million.
On the other hand, Bitcoin Cash SV remained at a lower price, but saw an increase of $48 million in trading volume.
In the meantime, the ABC clan, led by Roger Ver, went all-in and used most of its hash power to mine BCH ABC coins. The SV team, contrary to expectations, is holding back. This is the big question: Why is the SV team not employing all their hash power?
We asked Coined Times crypto market analyst, Maria Matic, for her opinion. She said:
The SV team is probably preparing class lawsuits on behalf of miners from pro-ABC pools who were involuntarily diverted to mine BCH. At least that’s what Craig Wright is hinting. Roger Ver obviously doesn’t care about lawsuits, though, considering how much hash he’s diverted to ABC. The bigger mystery is finding out if SV’s hash is being withheld in preparation for an attack on the ABC chain. The other unknown is how Bitmain will react in that case. I guess we’ll find out soon.
Market capitalization and BTC
The bear market, which has been fairly stable over the past few months, fell abruptly the day before Bitcoin Cash’s hard fork. Investors took Bitcoin Cash out of exchanges and the price of BTC dropped sharply, dragging altcoins down with it. The plunge below $6,000 and down to $5,600 levels has prepared investors for the possibility of a further drop.
Total market capitalization went from $209.42 billion on the morning of November 14 (UTC +1) to $185 billion two days later.
BTC’s market capitalization went from $110.7 billion to $97.1 in two days, a total loss of more than $13.5 billion. The coin’s price, which had remained largely north of $6,400 since mid-August, fell to its lowest level in 13 months.
After the dip, Ripple (XRP) started recovering faster than BTC and Ethereum (ETH), helping XRP overtake ETH for the second time since January 2018. In doing so, XRP became the second-largest cryptocurrency in the world.
The current gap in market cap between the two is around $600 million. With a significant increase in trading volume, XRP’s price went down against the US dollar. But, as shown in the graph, it didn’t suffer as much as BTC, leaving XRP in a better position this morning.
ETH has lost $2.86 billion in market cap since November 14, and its price fell to $180.
Stellar (XLM) also took a nosedive during the BCH hard fork, but is quickly regaining its value. Its price is currently $0.242.
With the Bitcoin Cash hard fork war raging on, the turbulent times might be far from over. A lot is at stake, and other coins are feeling the heat, which is affecting the whole market. Right now, everybody’s asking the million dollar question: What can trigger the crypto market’s much-awaited bull run?
Let us know what you think in the comments below.