I’ve watched the market go crazy the past 2 days. But it isn’t close to what anyone predicted. As a matter of fact, it reminded me of Y2K when there would be a run on the bank, they screamed. And everyone was hoarding dry foods and water to prepare for the apocalypse. Both incidences were rather anti-climatic.
A minority group of miners voted for the hard fork and 2 days ago Bitcoin’s block chain split on August 1st, created a new, separate cryptocurrency called Bitcoin Cash. The User Activated Hard Fork (UAHF) took place.
Bitcoin Cash’s price remains volatile, dragging downwards today after yesterday’s rapid climb.
Yesterday, the new Bitcoin Cash token’s price jumped to near $800 with a $12.5 billion market cap. BCH was unable to sustain that level, however, and Bitcoin Cash price crashed by 59% to $309 within a six-hour period. The plunge hit Bitcoin Cash so hard that it temporarily dropped to 4th in the market cap rankings, pushing Ripple back into 3rd. Since then, the bitcoin cash price experienced a moderate recovery and was sitting pretty at $426 for a 24-hour decline of 36%. At $7 billion, it had a slight market cap edge on Ripple. But as of now, it dropped back into 4th place at $386 with a market capitalization of $6.4 billion with Ripple narrowly edging Bitcoin Cash out at $6.7billion. Bitcoin Cash is hurting with a 29.51% decline in the last 24 hours.
But Bitcoin’s price has stood firm throughout the event and continues to hold above the $2,750 level. This was contrary to what the pundits predicted. While Ethereum’s price, meanwhile, has risen more than 10% in the past week.
Bitcoin Cash was in 3rd place in terms of market capitalization. While others are going on and on about this amazing event, I will throw some reality water into the pot. Market cap is based upon price and supply. Being that a large supply of bitcoin cash are stuck in many wallets, the market capitalization is highly inflated. Many exchanges have yet to allow any deposits or withdrawals of Bitcoin Cash to take place. This means that when they do, the dam will open and let the flood begin! Sell! Sell! Sell!
Today Bitcoin Cash is in 4th place and I predict it will fall faster than a meteor into the Earth’s atmosphere on a clear night.
Bitcoin has shown remarkable resilience throughout the hard fork non-event, causing even Motherboard to concede that “bitcoin has sailed through another crisis with nary a scratch.” Since August 2, the price of Bitcoin has consistently traded between $2,670 and $2,770. Right now, Bitcoin’s price is $2,787 – a 24-hour increase of 3.12% and a weekly increase of 7.78%. Bitcoin’s market cap is about $46 billion.
Let us not forget about our friend, Ether (Ethereum).
While Bitcoin and Bitcoin Cash have been getting all of this attention this week, the price of Ether has quietly thrown up some impressive numbers. Last week, Ethereum started inching up after a month-long low period ending at $180 on July 29. Since then, the price of Ethereum has climbed more than $45. A single unit of ether is currently trading at $226. This is a 2.4% 24 hour gain and a 7 day gain of 11.15%.
Don’t forget about the other altcoins such as NEM at $2.06billion and is sneaking up on Litecoin at $2.25billion.
As the Cryptocurrency World Turns will continue… In the meantime, don’t stress the daily movements. The big picture and the long term trends are what matters the most.
Faith “Crypto Queen Wiki” Sloan