JP Buntinx - November 10, 2017 (themerkle.com)
It is safe to assume the Bitcoin Cash price is being heavily manipulated right now. While this doesn’t mean the altcoin is overvalued per se, there are some interesting things happening in the trading department. With a current Bitcoin Cash price of over US$800, someone is clearly trying to push up the value of this altcoin. The latest pump comes on the heels of a previous one which ended not too long ago.
BITCOIN CASH PRICE PUMP CONTINUES
Last week, we saw some major gains for Bitcoin Cash appear out of the blue. There was no real reason for a steep Bitcoin Cash price increase, and there isn’t one today either. Regardless of the sentiment, the price is effectively moving up and doing so at a very quick pace. The people who bought BCH at US$350 two weeks ago will be very happy with their investment, as they’ve more than doubled their money by continuing to hold it today.
Although it remains to be seen if a lot of people resisted the temptation to sell at US$600 last week, the current momentum is pretty spectacular. With the Bitcoin Cash price rising by another 31% out of the blue, this altcoin seems underway to reach a new all-time high. This is all happening while the Bitcoin price is massively struggling for traction, especially now that the SegWit2x hard fork news has caused so much confusion.
It is possible this new Bitcoin Cash price pump is a direct result of the shenanigans involving SegWit2x. People tend to forget that a lot of SegWit2x backers are also the ones advocating Bitcoin Cash the hardest right now. For all intents and purposes, we may be witnessing one of the biggest “politically-oriented coins” in Bitcoin history right now. It is evident the Bitcoin network has some scaling issues to overcome, whereas Bitcoin Cash solved this problem by upping the block size to 8MB directly.
With over US$2.14 billion in 24-hour trading volume, things are looking pretty good for Bitcoin Cash right now. This trading volume is not too far behind Bitcoin’s, which is pretty impressive in its own regard. It is also well ahead of any other alternative cryptocurrency currently in the top 10. The bigger question is how much of this volume represents genuine interest in BCH rather than speculation. That number is probably a lot lower than what some people may proclaim it to be.
As is pretty much always the case, Bithumb has taken care of almost half of all BCH trades over the past 24 hours. Bitfinex and Coinone round out the top three, although Korbit and HitBTC are not too far behind. It is evident South Korea has solidified its position as a global cryptocurrency trading powerhouse these past few weeks. Bithumb especially is generating a lot more volume than most Chinese exchanges were ever capable of.
In the end, the lingering question is whether or not the Bitcoin Cash price momentum can be sustained for a long period of time. We have now seen two extended pumps in quick succession, which further confirms there is nothing natural about this growth whatsoever. There are still a lot of holders who never sold their coins since day one. Once these people start unloading BCH, things will get very interesting, to say the least. It is a great altcoin for some quick profits, though; that much is certain.
Jdebunt
JP Buntinx is a FinTech and Bitcoin enthusiast living in Belgium. His passion for finance and technology made him one of the world's leading freelance Bitcoin writers, and he aims to achieve the same level of respect in the FinTech sector.
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