Bitcoin’s judgment day has arrived. Shortly after 12:20 p.m. UTC, Bitcoin Cash forked from the Bitcoin blockchain, effectively creating a new cryptocurrency and airdropping coins to BTC holders.
The bitcoin price declined in response to the chain split as the community waits to see what trajectory Bitcoin Cash will take. The ethereum price, meanwhile, has experienced a 24-hour surge, vaulting it past the $200 barrier.
Bitcoin’s reversal caused the total cryptocurrency market cap to dip after reaching a high as $95.8 billion early Tuesday morning. At present, the total valuation of all cryptocurrencies is about $92 billion, although this does not account for bitcoin cash.
The bitcoin price had a dominant week leading up the August 1 hard fork, rising as high as $2,900 Tuesday morning. But it began to decline in the hours before to the bitcoin cash deployment. At 12:20 p.m. UTC – which initiated the six block countdown to the fork – the bitcoin price had dipped to $2,800, and it continued to decline after the split occurred. At present, the bitcoin price is $2,735 – a 24-hour decline of 2.5%. The bitcoin market cap is approximately $45 billion.
It remains to be seen what effect bitcoin cash will have on the bitcoin price in the coming days, but volatility should be expected. Don’t be surprised if the bitcoin price swings violently in the short-term.
Ethereum experienced its own high-profile chain split following the controversial decision to implement a hard fork in response to the DAO hack. This time, the ball is in bitcoin’s court, and the ethereum price is surging. On July 31, the ethereum price fell below $200 to complete a disappointing month. That changed on August 1.
In the past day, the ethereum price has risen by more than 13%, leaping over the $200 mark to reach its current value of $222. This gain brought ethereum’s market cap back over $20 billion.
Bitcoin cash futures traded on ViaBTC for more than a week leading up to the chain split, steadily declining from an opening price of about $500 to below $300 on July 31. The bitcoin cash price quickly reversed course on August 1, however, as the proposed chain split became a reality. In the past day, the bitcoin cash price climbed 45% against bitcoin to return to the $400 mark.
CoinMarketCap lists bitcoin cash’s current daily volume at $2 million. Watch the bitcoin cash price carefully as non-ViaBTC traders gain control of their coins and introduce them to the markets.
Everyone’s eyes are on bitcoin cash today, but other altcoins are swinging into positive territory. The Ripple price rose 6% to $0.174. The litecoin price rose 4% to break through the $40 level. The NEM price rose 7% to further cement its place as the 5th-ranked coin. The Dash price increased 5% to $181, while ethereum classic continues to nip at its heels following a 4% gain. Eighth-ranked IOTA rose 7%, while Monero and EOS rose 5% and 2%, respectively.
Other than ethereum, Stratis was the only top 10 cryptocurrency to rise more than 10%. The Stratis price climbed to $5.74 for a daily gain of 20%.
For the past five days, bitcoin had been able to boast a total market share of more than 50%. That streak ended following the hard fork when bitcoin dominance dipped to 49%. Ethereum increased its share 22.6%, while other top altcoins saw moderate gains.
Again, this chart does not account for bitcoin cash, whose market cap is not yet clear.
Featured image from Shutterstock.
Last modified: May 21, 2020 9:38 AM UTC