Today is the day of the much anticipated Bitcoin Cash hard fork. The lead-up to the fork has had a significant impact on the price of Bitcoin Cash.
The initial lead-up to the fork resulted in a spike mainly catalyzed by major exchanges announcing their support for the hard fork. Support from various exchanges led buyers to rush to obtain Bitcoin Cash to receive the hard fork of the coin in a 1:1 ratio.
The spike was followed up by a retracement which has been made worse by the bearish movements we are now seeing across the market. Before the spike, Bitcoin Cash traded at around $425. Bitcoin Cash is currently trading back at this point after retracing all of its appreciation. Yesterday’s price action brought price from around $500 to approximately $425. This sell-off occurred on significant volume but today’s candle is so far forming a Doji despite continued decreases in most other cryptocurrencies. This is likely in anticipation of today’s fork.
The effect the hard fork will have on the overall market, if any, is unknown. There has been a threat from Craig Wright to dump large amounts of bitcoin on to the market if miners to not show support for Bitcoin Cash SV after the fork. It is unknown how much Bitcoin Wright holds, but the potential is there for large amounts to be sold driving the market down even further.
- Bitcoin cash has retraced all of its price spike which occurred in the lead-up to this hard fork.
- The hard fork occurs today and price is holding steady anticipation
- There is potential for large amounts of Bitcoin to be dumped on to the market by Dr Craig Wright