Initially, in the first weeks of November, the price of Bitcoin Cash (BCH) rose. Investors have begun to accumulate the asset ahead of the upcoming fork and network split, during which holders of the main asset will also receive a new cryptocurrency, BSV. Why did the price drop by 81%?
After the hard fork, which was accompanied by a violent conflict between the BCH and BSV teams, the camp led by Craig Steven Wright and billionaire Calvin Ayre continued to threaten Bitcoin Cash. In particular, there were words about carrying out a 51% attack on the Bitcoin Cash network and freezing the blockchain using spam transactions.
Despite the fact that none of these threats were carried out, many investors managed to question the reliability of both BCH and BSV.
Employees of the large American exchange Kraken, for example, stated that they cannot integrate BSV into their platform due to attacks provoked from the SV camp. Constant attacks on one of the ecosystems destabilized both cryptocurrencies, which ultimately led to a decline in the price of BCH. Over the past month, the price of BCH has fallen by 81.6%.
What will happen to Bitcoin Cash?
According to Peter Brandt, a renowned technical analyst, technical indicators paint a rather bleak picture. He said:
“Looking at charts like BCH, it is easy to believe that most coins will end up worth zero.”
With massive oversold conditions and a depleted market, many cryptocurrencies have a chance to recover in the near future.
However, the intensity of the current BCH price collapse may make the chance of recovery minimal. As of December 6, BCH's daily trading volume is approximately $110 million, less than two percent of Bitcoin's daily trading volume.
As a result, the initiators of the fork destroyed their brainchild themselves.
According to www.ccn.com
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