Catastrophic, crazy and heartbreaking. These are some of the adjectives being used after the biggest pump seen in cryptocurrency history; came crashing down.
Bitcoin Cash (BCH) has been steadily rising since late October culminating in a large spike in market cap and value towards the middle of November. The numbers are startling; Bitcoin Cash had a larger market cap than Ethereum and over 10 Billion of trade volume changed hands within 24 hours.
As can be seen on the above graph, BCH reached an approximate mark of 0.42 BTC before plummeting to a low of 0.2 BTC in the space of 90 minutes. Social media was blowing up with wildly different theories as to the cause of the crash.
Bithumb (Korea's largest exchange) went down for around 15 minutes. This kickstarted the beginning of the BCH sell off. Some on social media suspected this was planned after the large amount of 'pumping' that had occurred in recent times.
Once bithumb had recovered, optimism returned shortly but the damage had already been inflicted. Due to the rapid loss in value, many were not prepared in time to sell their BCH investment causing widespread panic and distress. Bitcoin responded in turn; with most of the market selling back to BTC which bounced back considerably from it's recent slide.
At the time of writing, Bitcoin Cash appears to be back on the rise. I wonder what is in store for the next chapter of this interesting cryptocurrency power play.
By Andrew Butler of CryptoCult
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