Prices of most of the leading cryptocurrencies dropped by a vast 9-18% on 14 November. The bear attack caught many investors and crypto pundits by surprise, as they were expecting a stable return, if not a significant rise. The primary cause of the downfall is believed to be the tussle for breaking up Bitcoin Cash into Bitcoin SV(Satoshi Version) and Bitcoin ABC (Adjustable Blocksize Cap).
There are two parties involved, Craig Wright is leading the Bitcoin SV front while Jihan Hu wants Bitcoin ABC to become mainstream. The war of words between the two communities and continuous bashing of each others opinion might have set a chain reaction, leading to a selling spree. Generally, a HardFork results in monetary gain, however, in this case, things went haywire. The verbal cold war between the two made the investors a little jittery, and due to uncertainty, they might have started selling their stocks leading upto the Fork.
After the price drop, there were various reactions from the crypto world. Some were shocked, while a few brushed it off as a bad day; while another set of people were busy getting rid of all their currencies. A Reddit user wrote, “I have put all my cryptocurrencies into a wallet and froze it, will look at it after a couple of years, can’t take the stress.”
Another one wrote, “I received my salary and bonus yesterday, Bitcoin prices fell below $6000, coincidence?”
What Experts feel About the Price Drop?
The sudden drop made everyone go looking for experts and get an insight into probable causes for the downfall. Brian Kelly, founder, and CEO of BKCM is not much concerned about the price and believe its nothing out of the blue. During an interview with CNBC, Kelly resonated the opinion of other experts saying the price drop is temporary. He also believes the bad word of mouth among the BCH community regarding the Hard Fork is one big reason.
An excerpt from the interview,
”People started selling, that triggered stops, everybody got concerned. The entire market settled down. In my view, a very short-term event,”
Another expert noted, even last year before the sudden boom in crypto prices which made Bitcoin investors richer by many folds, a sharp drop in prices was observed. So, one must consider everything before bailing out.
On the other hand, if the downfall has occurred due to a Hash conflict between CoinGeek and BCH, then the drop might continue for few more weeks to come.