Amid the bear phase of crypto market, if there’s one cryptocurrency that has suffered the most, it is Bitcoin Cash (BCH). Since 7th of November, the BCH price has plunged as much as 67% from $640 to $210. Also in the early hours of trading in US markets, it touched $190 at one point. The question here is… what is driving this free fall of Bitcoin Cash? Is it because of the recent fork or some other reason? Unfortunately, the answer to these questions is not as plain and simple as we would wish to see.
BCH had plunged from $640 to $450 even before the fork and the beginning of hash war. That was partly owing to the possibility of fork and the ongoing bearish market. When the hash war started between BCH ABC and BCH SV, things got even more tense and today the $200 support level was breached. Within last two days, 25% of drop has been registered, and in spite of BCH ABC winning the hash power war hands down the trend of its downfall isn’t showing any sign of reversal. Why is it so?
As indicated by the analysts, the reason is uncertain future of BCH in spite of the victory in hash power war. The Bitcoin Cash SV camp members are still threatening the ABC community that they would not bother to discuss anymore and there would be a certain split of the chain. After that, BCH SV won’t be regarded as a fork of Bitcoin Cash. A member of Bitcoin Cash SV camp, Calvin Ayre, said –
“CoinGeek now feels there is no point in negotiating. If ABC puts replay protection in to permanently split the chains we will ensure that nobody bothers them again. They can keep BCH as BSV is not the original Bitcoin Cash its the original Bitcoin.”
This is something that doesn’t mean that BCH isn’t going to recover. It would recover once this ongoing feud comes to a conclusion and both factions part their ways, but things aren’t going to settle down anytime soon.