Over the last 24 hours, the price of Bitcoin Cash (BCH) has dropped by more than 8 percent, experiencing a steep sell-off for the first time since October 11.
For nearly two weeks, BCH has maintained strong upward momentum supported by the growing anticipation towards the scheduled November 15 hard fork on the Bitcoin Cash network.
Yet, since November 7, Bitcoin Cash has recorded five sell candles on its daily price chart, dropping from $640 to below the $500 mark within a five-day span, by more than 22%.
During the weekend, the daily trading volume of the crypto market tends to dip as trading activity in both the public cryptocurrency exchange market and the over-the-counter (OTC) market gradually drops.
However, the volume of Bitcoin (BTC) still remains above the $4 billion and several major cryptocurrencies like Ethereum (ETH) have maintained decent daily volumes, with ETH at around $1.5 billion.
Yet, Bitcoin Cash, which experienced a spectacular run throughout the past two weeks, fully retracted from its recent rally triggered by the scheduled November 15 hard fork.
On November 12, Bitfinex, the fourth-largest cryptocurrency exchange in the global market according to the Blockchain Transparency Institute, announced support for the Bitcoin Cash hard fork but stated that it will not side on any of the two camps (Bitcoin SV and Bitcoin Cash) until the hard fork is complete and the community demonstrates consensus.
“Bitfinex will not advocate for or against any particular fork, and miners have the full prerogative to commit their hashing power to whichever projects they choose. At the time of writing, we do not believe that there is sufficient consensus to identify a clear winner in the Bitcoin Cash hard fork.”
Coinbase and other leading exchanges have already announced support for the original roadmap of Bitcoin Cash set forth by ABC and bitcoincash.org.
Prior to the hard fork, a large number of investors purchased BCH because, upon the fork, holders of BCH are offered Bitcoin SV at a 1:1 ratio to their BCH holdings, similar to how Bitcoin holders were provided with BCH at a 1:1 ratio after the fork.
The merit of investing in BCH prior to the fork is that investors receive Bitcoin SV, which then can be sold on exchanges that support it.
Despite the hard fork, BCH is continuing to fall in value, possibly due to the intensifying conflict between the two camps. Earlier this week, Craig Steven Wright, a supporter of Bitcoin SV, made several threats against both miners and developers on the network if the hard fork is to go to the way of Bitcoin Cash.
Within the past 48 hours, the cryptocurrency market has recorded a drop in its valuation of more than $3 billion, from $213 billion to $210 billion.
Several cryptocurrencies including Stellar (XLM) and Monero (XMR) demonstrated positive short-term price movements throughout the past three days. But even the momentum of the two assets, which remain as the only positively performing cryptocurrencies in the top 20 rankings, has started to fade away.
Featured Image from Shutterstock. Charts from TradingView.
Last modified: July 3, 2020 9:14 AM UTC