Bitcoin collapsed overnight, trading as low as $5555 – down 30% from its highs – before bouncing back above $6000, as Bitcoin Cash soared to as high as $2450 (4 times its price on Friday), overtaking Ethereum briefly as the second largest market cap cryptocurrency.
image courtesy of CoinTelegraph
Bitcoin has lost around $30 billion in market cap, but found buying interest as it ripped below $6000 and has stabilized this morning
Bitcoin Cash exploded in the last two days – quadrupling in price at one point to over $2400 as Bitcoin crashed.
As Coin Telegraph reports, the sharp rise in Bitcoin Cash’s price has come at the expense of Bitcoin. Bitcoin’s price has been on a steady downtrend ever since the Segwit2X fork was cancelled. A lot of people had bought Bitcoins in the expectation that they would get free Segwit2x coins after the fork. While market observers had expected some of this hot money to flow into altcoins once the Segwit2X fork happened/got cancelled, Bitcoin Cash seems to have been the main, but not only, beneficiary. The combined price of Bitcoin and Bitcoin Cash is over $8,000, which is not very different from the price on Friday.
That surge in Bitcoin Cash pushed its market cap above Ethereum for a brief time…
All of this chaos has left many wondering what is going on. Arjun Balaji provides some much-needed context for what is occurring in the crypto space.
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