Bitcoin Cash price has back on track surging its way past $700 level after a few hours of decline yesterday leaving Bitcoin and Ethereum in the shade – again.
Alongside the price, trading volumes of Bitcoin Cash also increased to the highest level reached by any digital currency at some $4.2 billion yesterday with South Korea leading the trading volume charts.
Yesterday and today Bitcoin price fell from an all-time high of $4,500 to a recent low of $3,900. However, trading volumes have increased to its own all-time high of $3.3 billion with the BTC/BCC or BCH pair accounting for much of it. The inverse price movements began yesterday after Bitcoin Cash mined an 8MB block processing some 40,000 transactions, the biggest block mined by any digital currency ever.
Ethereum has seen its price fall too from a recent high of $330 to $280 before recovering to $286 and at the time of writing it is trading at $314 levels down 3.0 per cent compared to yesterday. Trading volumes of Ethereum have fallen to just under $1 billion as Bitcoin Cash starts running the show for now just after two weeks since its inception.
It’s not very clear why eth is falling. The BTC/ETH pair might be having an effect, but it usually de-couples and re-couples as it pleases, so any such effect might be minor. We believe that the decline in eth price is most probably because traders are concentrating on Bitcoin Cash at the moment and some of eth’s value is overflowing into Bitcoin Cash’s.
The combined market cap has remained somewhat unchanged. So it seems value is shuffling around with Bitcoin Cash taking the majority of the pie in price movements.
The question remains whether this is a blip or a new normal. We have to say we don’t know, but it is probable in-fighting in Bitcoin Core will continue as businesses seem serious about segwit2x. That may mean reduced confidence in that chain as uncertainty increases ahead of November with Bitcoin Cash potentially benefiting much from it.
The effect of that on ethereum remains to be seen, but the currency has its own ecosystem and added capabilities, so it might be simply the case that it’s not their time to run the show yet since, it appears, it’s Bitcoin Cash’s turn.