Out of the 10 most valuable cryptocurrencies in the market, Bitcoin Cash (BCH) has taken the biggest hit on Friday, as Bitcoin Cash price declined by more than 41.8 percent.
Over the past week, the South Korean cryptocurrency market’s Bitcoin Cash frenzy and the integration of BCH on the Coinbase brokerage platform and its cryptocurrency exchange GDAX led to a metoric increase in the value of Bitcoin Cash.
Within seven days, the price of Bitcoin Cash surged from $1,760 to $4,300 at its peak, increasing by more than 144 percent.
As allegations against Coinbase’s potential insider trading of Bitcoin Cash emerged, the price of Bitcoin Cash experienced a minor correction, from $3,500 to $3,300. Still, a few hours later, the price of Bitcoin Cash peaked at $4,300, due to the rising demand for the cryptocurrency in South Korea.
For a brief period of time, Coinbase and GDAX suspended Bitcoin Cash trading given its unexpected volatility and suspicious price movement of BCH prior to the integration of Bitcoin Cash by Coinbase and GDAX. Coinbase CEO Brian Armstrong wrote:
“I take the confidentiality of material non-public information very seriously as CEO. Given the price increase in the hours leading up the announcement, we will be conducting an investigation into this matter. If we find evidence of any employee or contractor violating our policies — directly or indirectly — I will not hesitate to terminate the employee immediately and take appropriate legal action.”
Even the Coinbase insider trading fiasco and CNBC’s “conflict of interest” and unjustified reporting of Bitcoin Cash as demonstrated by WhalePanda were not sufficient to stop the bull run of Bitcoin Cash.
However, on December 22, the strong short-term rally of Bitcoin Cash came to an end, as the entire cryptocurrency market experienced a major correction. The market valuation of cryptocurrencies decreased from $600 billion to $422 billion.
The latest decline in the price of Bitcoin Cash is not specific to BCH. Every single cryptocurrency in the market, from the largest to top 100 cryptocurrencies have fallen in value. Bitcoin, Ethereum, Litecoin, Ripple, Monero, and IOTA have recorded over 30 percent decrease in price over the past 24 hours.
Hence, the price of Bitcoin Cash will likely recover if the cryptocurrency market can recover swiftly, in the short-term. Throughout 2017, the entire cryptocurrency market had not experienced a correction of this size in which every cryptocurrency in the market was affected.
But, analysts have noted that the recent price correction of cryptocurrencies was necessary, given the exponential increase in value and market valuation of cryptocurrencies since January 1.
For a real-time bitcoin cash price chart, click here.
Featured image from Shutterstock.
Last modified: May 20, 2020 9:15 PM