Bitcoin Cash split into two chains today, dividing one of crypto’s most controversial communities. Bitcoin Cash (BCH) turned into Bitcoin ABC (BCHABC) and Bitcoin SV (BCHSV).
One thing is certain – the last 48 hours have been anything but boring. (To catch up on more of the story’s background, check out Crypto Insider’s previous BCH fork article.)
BTC Action Related?
Yesterday saw Bitcoin rapidly drop hundreds of dollars, according to real-time data from Blockmodo. One speculation, according to Craig Wright’s tweet yesterday, sees Wright and his crew selling some of their Bitcoin stacks to pay for BCHSV mining power.
To all BTC miners…
If you switch to mine BCH, we may need to fund this with BTC, if we do, we sell for USD and, well… we think BTC market has no room… it tanks.
Think about it. We will sell A Lot!
And, have a nice day
(BTC to 1000 does not phase me) pic.twitter.com/oUScEahtWc
— Dr Craig S Wright (@ProfFaustus) November 14, 2018
Other explanations for the BTC price drop include natural market movements predicted months ago by individuals like Tone Vays.
Around this time most will start making up excuses at to reasons for the #Bitcoin Price Drop. They will blame manipulation, whales, $BCH Fork Drama/Fear, @ProfFaustus recent tweet on selling $BTCUSD, etc.
Occam's Razor: "Maybe People Just Stooped Buying the $6k (Yearly) Low" pic.twitter.com/Gwlh2YweA1
— Tone Vays [@Bitcoin] (@ToneVays) November 15, 2018
The BCH fork occurred about mid-day today. During which time some traders may have tried to buy BCH right before the fork, and sell right after. This would in theory possibly allow them to receive the forked currencies by holding BCH during the fork.
Bitcoin Cash (BCH) sends, receives, buys and sells are now paused. Please follow @CoinbaseSupport for further BCH fork updates.
— Coinbase (@coinbase) November 15, 2018
At the time of this writing, roughly 9 hours later, trading on Coinbase Pro was still suspended, with BCH price stagnant at $415.
Meanwhile, shortly after the fork, Bitfinex exchange saw prices plummeting, with traders stuck in positions.
Crypto trader @Philakone (on Twitter) explained the situation and the dangerous implications of trading this type of fork scenario.
Philakone goes into detail on lagging Bitfinex pages and a price spread of $60. (This means the bid/buyers had a difference of $60 comparative to the offer/sellers.)
16% SPREAD ON BITCOIN CASH. I MASSIVELY WARN YOU AN EXTREME AMOUNT. You take this risk, you risk liquidation and losing massive. You short, you risk not being able to close it. pic.twitter.com/0X9YGmg6Lb
— Philakone (@PhilakoneCrypto) November 15, 2018
At the time of this writing, BCH was priced at about $288 on Bitfinex, with the last price update occurring seven hours ago, according to Coinmarketcap.com. Although combined exchange pricing for BCH is at about $422 on Coinmarketcap.com at the time of this writing.
The BCHABC/BCHSV Mining Battle
So where are the miners gravitating in this BCH chain war? According to a few pictures on Twitter around press time, it appears as though Bitcoin SV is having a hard time. Although it is currently difficult to sift through the noise to know what is really going on out there.
The results of this fork will likely require time to sort out.
— Crypto Holmes San (@CryptoHolmesSan) November 16, 2018
What Does This All Mean So Far?
All of these associated events indicate crypto markets may not be ready for mainstream volume, attention, and adoption.
The drama from these events likely doesn’t look good to institutions and the SEC. This fork occurred at a crucial time, while the SEC is evaluating Bitcoin ETF proposals.
Forbes wrote a relevant article after the SEC denied several Bitcoin ETF proposals in August. The article mentions Georgetown University professor James Angel talking about the Commission’s rejections.
He states -“[t]heir rationale is that the exchanges have to show that the underlying market for bitcoin is not subject to fraud and manipulation, and the exchanges have not met their burden of proof. Given the history of fraud, hacks, and manipulation in the bitcoin market, it makes sense”.
*Crypto Insider is sponsored in part by Blockmodo. as part of our arrangement with them, Crypto Insider may occasionally link to, and quote, Blockmodo when appropriate. this is done at the discretion of our staff. Crypto Insider sponsors have no say in any of our editorial decisions.