A lot of people have high hopes for Bitcoin Cash. After a very difficult day yesterday when the price dipped to US$884 at one point, we now are seeing a strong rebound. Thanks to a near ten percent gain over the past 24 hours, things are looking pretty solid for this currency. How all of this will play out in the long run remains subject to debate.
Bitcoin Cash Price Above $1,100 Once Again
It is always interesting to see how cryptocurrencies evolve in price over time. More specifically, Bitcoin Cash has thrown a lot of people for a loop, which is not entirely surprising. With the Bitcoin Cash price spiking to US$2,500+ last week and dropping to under US$875 about a week later, it is very difficult to make sense of it all. Novice investors will not be happy with this development whatsoever, as there have been plenty of people who lost money with BCH over the past few days.
At the same time, the people who bought the Bitcoin Cash price dip – which we accurately predicted yesterday – will have made some good money as a result. By buying BCH at US$885 and simply holding it for a few hours, traders made over US$250 in profit per coin. There is a lot of speculation in the Bitcoin Cash market right now, but that is part of what makes cryptocurrencies so valuable to the right people.
The volatile Bitcoin Cash price is not necessarily beneficial to this particular altcoin, though. It is evident there is a lot of good money to be made, but such violent price swings may also make people lose faith in BCH over time. While Bitcoin itself is volatile in its own right, most people will assign terms such as “pump” and “scam” to Bitcoin Cash. That is only to be expected until BCH finds more stable ground, but for now, that seems unlikely.
One thing working in favor of Bitcoin Cash is that there has been a major increase in its trading volume. More specifically, over US$3.46 billion worth of BCH has changed hands over the past 24 hours, which indicates there is a strong demand for this altcoin right now. At the same time, it remains to be seen how much of this demand is due to speculation rather than actual interest in Bitcoin Cash. Of course, that can be said about virtually every other cryptocurrency in existence today.
Unsurprisingly, Bithumb is the main benefactor of the increased Bitcoin Cash trading volume. With over US$1.3 billion worth of volume over the past day, it is evident the South Korean exchange is still very keen on Bitcoin Cash. Bitfinex is in second place, followed by Coinone. Two of the top five BCH trading markets relate to Bitcoin, whereas the other three are fiat currency-based. That’s an interesting situation well worth keeping an eye on.
How things will play out for Bitcoin Cash over the next few days remains to be determined. With the weekend almost upon us, things may head in a completely different direction for no good reason. While this market is pretty volatile right now, there is still the simultaneous potential for stability and growth. No one knows for sure if we will see more volatility or a clam market over the next few days. Rest assured the Bitcoin Cash market will generate a lot of debate over the coming weeks.