Controversy Sparks Cryptocurrency Volatility
Two major offshoots (otherwise known as ‘hard forks’) of Bitcoin – namely, Bitcoin Cash and Bitcoin SV (Satoshi’s Vision) – diverged sharply on Monday. This occurred after Binance, one of the world’s largest cryptocurrency exchanges, delisted Bitcoin SV.
The delisting occurred after Binance accused Bitcoin SV founder Craig Wright of attacking those who disputed his claim of being Satoshi Nakamoto, a pseudonym for the legendary creator of the original Bitcoin. As a result of Binance’s action, Bitcoin SV dropped around 17% on Monday. Meanwhile, Bitcoin Cash surged around 7% as Bitcoin SV investors flocked back to the older, more established token.
Cryptocurrencies Trading Higher Overall
On a larger time frame, cryptocurrencies overall have been on the move of late. Early this month, many cryptos surged sharply on the heels of a large upswing by Bitcoin. It’s unclear exactly what drove that move. But reports at the time suggested that a buy order for over 20,000 bitcoins (worth around $100 million) may have triggered further algorithmic trading activity that boosted prices dramatically. The resulting buying frenzy also lifted most of the smaller cryptocurrencies (or ‘altcoins’) in a wave of bullish contagion.
Crypto Performance Varies Widely
As of mid-April, the bullishness has sputtered a bit, but some cryptos remain strong. The noted Bitcoin Cash is not far off its early April high after Monday’s jump. It’s also the leading performer at a whopping gain of over 90% year to date. The original Bitcoin has also fared well at over a 30% gain YTD. Ethereum has gained a respectable 15%. And Ripple continues to lag in significantly negative territory. Finally, Bitcoin SV has been having a rough time this year thus far, even before Monday’s drop. It’s down well more than 30% since the beginning of the year. And it may see further downside as the founder’s conduct and claims to being Satoshi Nakamoto come under further scrutiny.
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Senior Market Analyst at The Technicals
A veteran global macro trader/analyst, Bart focuses on major market moves in currencies, commodities, fixed income, and global equity indexes. Bart stresses inter-market correlations and dynamics while keeping a close eye on risk. He has published countless market analysis pieces and has been a guest expert for a variety of major financial media. Contact Bart