By CCN: The bitcoin cash price surged on Monday and Tuesday as a social media campaign pressuring crypto exchanges to delist its top rival gained momentum. The fourth-largest cryptocurrency set an intraday high at $324.80 following the Asian market open. Unsurprisingly, BCH demonstrated an inverse…
The fourth-largest cryptocurrency set an intraday high at $324.80 following the Asian market open.
Unsurprisingly, BCH demonstrated an inverse trajectory to bitcoin SV (BSV). As some of the leading cryptocurrency exchanges announced that they would delist the controversial cryptocurrency, the bitcoin SV price plunged by 23-percent. At the same time, the bitcoin cash price appreciated more than 10-percent against the dollar.
One straightforward theory suggested that crypto traders were dumping BSV for BCH, and social media sentiment seemed to bear that out. On exchanges, both cryptocurrencies experienced large volumes against tether (USDT), which could indicate that funds were flowing from one to the other.
Hong Kong-based OKEx, which refused to delist BSV, was the top spot trading platform for both BSV and BCH. The crypto exchange hosted almost 8.9-percent of the total BSV volume. It also hosted 10-percent of the overall BCH volume. That proves that both the assets shared an interim inverse relationship in terms of price action.
The minor correlation should not mislead speculators into believing that bitcoin cash will continue to bleed its rival dry. The average profit-driven trader with an option to trade BSV would likely buy the dips and wait for the #DelistBSV campaign to blow over and the market to stabilize.
At the same time, bitcoin cash’s uptrend lacks strong fundamental and technical support, given that it merely cashed in on the anti-BSV hysteria.
Chief backer Roger Ver did his best to fan the flames of the intramural spat, challenging Craig Wright to sue him, too. That’s a political tactic: pose BCH as the only rival to BSV and then excite traders so they develop an emotional connection with the cryptocurrency.
Bitcoin cash could experience some headwinds now that SBI Virtual Currencies, a Tokyo-based regulated cryptocurrency exchange, broke from the #DelistBSV fervor to expel BCH from its platform.
All in all, the recent bitcoin cash rally is not the final word in the ongoing BCH/BSV civil war. Intraday traders are smart enough to play the pump – as well as the potential dump. In the end, this was just another day in the crypto market.
Last modified: January 10, 2020 2:19 PM UTC