From December 5 to 12, the crypto market experienced yet another decline in value. Bitcoin (BTC) led the pack, with Ripple (XRP) and Ethereum (ETH) following suit during the market-wide crypto drop. Bitcoin Cash (BCH) also suffered, but on December 6 Bitcoin Satoshi’s Vision (BSV) saw a brief price rise that ended two days later.
The SEC’s postponement of its final decision on Bitcoin ETFs – combined with legal action against the team behind the BCH hard fork – contributed to the crypto drop. During the week, United American Corporation filed a lawsuit accusing Bitmain, Bitcoin.com, Roger Ver, and Kraken of market manipulation. Thanks to this, BSV briefly overtook BCH in both price and overall market value.
BTC, ETH, XRP stabilizing
The total crypto market cap has fallen 12.8 percent in the week since December 5. BTC performed slightly better than the market as a whole, losing 10.6 percent ($460). It is now worth $3,450.
Ethereum (ETH) lost around 15 percent of its value, dropping bellow $100. It is currently trading at $90.
XRP also felt the effects of the crypto drop, with its price falling to $0.30, a loss of 12.5 percent.
The biggest crypto drop of the week occurred on December 7. BTC fell briefly below $3,300, but quickly regained footing as the week went on. The rest of the market followed suit, stabilizing in the process.
BTC’s mining difficulty continued to decline, dropping by 15.6 percent on December 3. It has dropped around 25 percent in Q4 so far.
BTC’s hash rate followed a similar pattern, declining to around 35.8 EH/s.
BCH reaches all-time low
The price of BCH dropped by 28 percent during the week and reached its all-time low of $97.59 yesterday. It has since regained some value and is trading above the $100 mark. The market cap of Bitcoin Satoshi’s Vision (BSV) briefly overtook BCH when BSV’s price rose to $113.67 on December 7. However, BSV is now trading at $90.10.
Many pundits believe the main cause of the brief flippenning between the competing cryptocurrencies was a BCH-related lawsuit. On December 6, Miami-based United American Corporation launched a lawsuit against BCH’s hard fork promoters. These include Bitmain, Bitcoin.com, Roger Ver, and Kraken exchange. In reaction, Ver denied accusations of market manipulation on the basis that improving upon open-source software is legal.
— Roger Ver (@rogerkver) December 8, 2018
From the other side of the fence, Calvin Ayre returned fire.
Unnamed co-conspirator exchanges and payment processors need to seek legal advice as all details on this manipulation come out in discovery. The only way to limit liability now is to reduce damages by delisting illegal ABC and having BSV be fully functional as BCH.
— Calvin Ayre (@CalvinAyre) December 8, 2018
It seems the Bitcoin Cash fork war isn’t over yet.
SEC delays ETF decision
December 6 also saw more lukewarm news as the SEC announced that it would delay its decision on Bitcoin ETFs. The announcement seems to have affected crypto prices, even though most experts expected it. By deferring the decision until February 27, 2019, the SEC bought itself time to look into VanEck and SolidX’s Bitcoin ETF proposals.
The Commission finds it appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider this proposed rule change.
The two companies filed their requests with the SEC on June 6. Despite already waiting six months, representatives from both organizations apparently expected this outcome. Gabor Gurbacs, the director of Van Eck’s digital asset strategy, said management did everything in their power to get the rules approved. “The SEC just needs time to understand the markets better,” Gurbacs told a crypto news portal.
After another difficult week in the market, investors will be hoping for some positive news to finally put an end to the prolonged crypto drop.