Categories: CryptoNews

Bitcoin Cash Price Plunges 39% Against 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’s price dropping from US$2,800 to US$1,162 over the past 36 hours, it is evident all good things come to an end. Many people made a lot of good money, yet Bitcoin still reigns supreme. It will be interesting to see what happens to the Bitcoin Cash price in the next few hours. So far, falling below US$1,000 seems the most likely outcome.

Bitcoin Cash Takes a Back Seat

Everyone knew the inflated Bitcoin Cash price would not be sustained for an extended period of time. Although things looked good most of last week and the early part of the weekend, everything is slowly returning back to normal. The peak of US$2,800 a few days ago was pretty spectacular, but it is evident people have had their fun for now. Traders are once again pulling money out of BCH and putting it into other currencies, at least for the time being.

Over the past 24 hours, we have seen very erratic Bitcoin Cash price movements. With the altcoin’s value falling from US$1,820 to US$1,077, there was a lot of good money to be made by selling high and buying the dip. A total of five attempts have been made to surpass US$1,900 since, but none have succeeded. None of this is entirely unexpected either, as Bitcoin Cash still has yet 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 that momentum would turn against BCH sooner or later. The pump has run for a much longer period than most people expected, and it seems now is the time for consolidation and the correction it deserves. No one knows where the bottom is for BCH, but rest assured there are plenty of people who already bailed. With the network having lost significant hashpower, BCH transaction confirmations have been delayed by several hours.

Related Post

It is also obvious that the Bitcoin Cash trading volume is drying up rather quickly. Although the past 24 hours saw well over US$5.4 billion in volume, that pales in comparison to the US$8 billion-plus 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 wallets to exchanges quickly enough until the network stabilizes again. When that will happen exactly remains anybody’s guess for now.

As has been the case virtually all week, Bithumb is still the busiest exchange when it comes to Bitcoin Cash trading. With over US$1.4 billion in 24-hour volume, it is responsible for around one in four trades. Bittrex and Bitfinex round out the top three exchanges, although they both value BCH a lot lower than Bithumb does. 

For anyone who expected Bitcoin Cash to overtake Bitcoin this weekend, reality is setting in pretty quickly. It is obvious this altcoin doesn’t 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 increase 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 US$2,000-plus range.

JP Buntinx

JP Buntinx is a FinTech and Bitcoin enthusiast living in Belgium. His passion for finance and technology made him one of the world's leading freelance Bitcoin writers, and he aims to achieve the same level of respect in the FinTech sector.

Share
Published by
JP Buntinx

Recent Posts

Concerns Grow as Big Players Offload AAVE, Triggering Speculation of a Market Downturn

In a troubling indication for the AAVE community, a number of the cryptocurrency's large holders,…

1 hour ago

PumpFun Quietly Offloads $8.22 Million in Solana (SOL), Raising Questions About Market Manipulation

In a recent development that has caught the attention of the cryptocurrency community, #PumpFun, a…

1 hour ago

Hacker Who Stole 2,930 ETH From zkLend Loses It All in Phishing Scheme, Admits Defeat

In a strange occurrence, a hacker was able to capture 2,930 ETH (worth about $5.5…

2 hours ago

Synthetix’s sUSD Faces Significant Depeg Amid SIP 420 Transition: Is This the Start of a Death Spiral?

Synthetix's stablecoin, sUSD, has dipped yet again—this time by 4.6%—in just the last 24 hours,…

2 hours ago

PumpSwap DEX Reaches $10 Billion in Volume in Just 10 Days, Sparking Competition with Raydium

In just 10 days from launch, PumpSwap—a decentralized exchange (DEX) on the Solana blockchain—reached $10…

2 hours ago

MAKER PRICE ANALYSIS & PREDICTION (April 2) – MKR Regains Strength After Slight Pullback, Advancing Bullish

Following a slow and steady recovery, MKR saw a little setback last weekend due to…

3 hours ago