I'm going to have to admit this straight away: I predicted Bitcoin Cash would hit a psychological wall at $1000 USD and then retrace back to being worth about 10% of Bitcoin. This has not happened. What happened today in crypto was stunning and dramatic... and suspicious.
Bitcoin Cash has surged into contender territory, approaching $2000 USD, while chipping away at Bitcoin's value, but really socking it to virtually all other coins in the market with few exceptions.
It appears to be quite the team effort to take down the king of crypto. Interestingly, while Bitcoin has plunged significantly in value, it has not dropped in an inversely proportionate ratio compared to the growth of Bitcoin Cash. Over the last couple days, Bitcoin has dropped in value about 10-15% whereas Bitcoin Cash has increased an enormous 250% in the same time period! The majority of value hasn't been drained from Bitcoin itself. Instead, the collective value of many alt coins - and, likely, large sums of fiat - have been poured into enormous growth for Bitcoin Cash.
Which leads me to wonder, what exactly is happening here? If this was truly a wholesale move from Bitcoin to Bitcoin Cash, a "democratic" choice "by the people", wouldn't we see a similar decrease in Bitcoin's value relative to the increased value in Bitcoin Cash?
Instead, what we are seeing is a concerted effort from very large volume holders to pour their alt coin and fiat assets into Bitcoin Cash. This is causing some weak Bitcoin holders to jump ship and try to ride along with the growth, but it is clearly a concentrated effort by a few parties to take down Bitcoin.
Tomorrow, Bitcoin Gold releases. This could drive Bitcoin Cash higher if this large volume group decides to trade in their Bitcoin Gold for Bitcoin Cash. A more natural pattern would be for profit-taking from Bitcoin Cash to pour back into other coins and perhaps into buying back Bitcoin. But if this large volume group of Bitcoin Cash proponents wants to seed doubt in the market and encourage traders to bail out of Bitcoin, tomorrow might be the beginning of the perfect opportunity to do so.
If you are one of the fortunate few to have held on to both your Bitcoin and Bitcoin Cash, you may want to keep holding on to see where this settles in a week or two. Or, pick the side you believe in and enjoy the show! It looks like this is an all-out war and it's pretty tough to say, at this point, who will be left standing.
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