In the past week lots of us predicted, including me, that the hard-fork would not result in an increase of value of the combination Bitcoin (BTC) & Bitcoin Cash (BCC). The value of BCC would come out of the value of BTC and the value of the 2 coins combined would not change very much, apart from normal trading over time of course.
Many us further believed that BTC and BCC would both decline in price and that the buying power would be used for other altcoins, increasing their respective prices.
Although it started largely the way it was predicted, events are currently looking a little differently now.
At the moment of writing this blog, BTC is trading around $2700 and BCC is trading at $700, having reached $900 according to the Worldcoindex chart below.
However traders on Bittrex, where BCC is quoted against BTC, were even reporting spikes to $1300 as you can see further below.
How is this possible?
As there are a lot of BTC and BCC holders out there who cannot sell their BCC as of yet, due to the exchange they registered is not trading or supporting it, we have not seen half of the selling power in my opinion. Due to relatively light selling pressure, the price has been able to rally faster than anyone predicted.
As to why people are buying BCC at the amazing prices remains a mystery looking at the comments on social media about BCC. However it could be explained as simple as the old adagio: Fear Of Missing Out.
Negative effect on altcoins
Whatever the reason is for the popularity of BCC, other altcoins are suffering as the money that could have been invested in coins like ETH, is now (still)pouring into BCC.
Be wary of the artificial low selling pressure of BCC for the moment and take into account the possibility of increased selling pressure in the coming days.
Stay tuned for more to come!
Images:
www.worldcoinindex.com
www.bittrex.com
We were not wrong, just wait until deposits are alowed, and it will start to crash. Possibly lower than $20. Great article btw.
thanks
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yup give it time...it'll drop. bch/bcc rally can't last. or the whole crypto market is in danger.
In my opinion FOOM is the reason, correction incoming!
I hate to admit it....but I also believed that BTC's fiat price would drastically drop because of the hard fork. I still can't understand why. For example: If I were to double the amount of currency available but the "football stadium capacity" still remained static...wouldn't the purchasing power of the currency cut in half? It's double the currency in circulation chasing the same finite amount of resources. For some reason, Austrian Economics don't apply to cryptocurrency I guess.