Bitcoin Spin-Offs are Struggling to Keep Up With Original Blockchain
Bitcoin prices surged to record highs on Thursday, as investors awaited the start of institutional trading early next week. For bitcoin’s spin-offs, gains have been harder to come by as of late, a sign that markets have fully moved on from the failed Segwit2x hard fork.
BCH/USD Price Levels
Bitcoin’s August fork declined nearly 3% on Wednesday to reach $1,338, its lowest in almost a week. Prices are still up 3.5% over the past five days, but have lost considerable momentum compared to last month. At present values, bitcoin cash is capitalized at $23.7 billion, enough for third spot on the list of global cryptocurrencies.
BCH/USD saw a daily turnover of $1.1 billion, according to CoinMarketCap. The bulk of the activity occurred in Europe and South Korea, on the HitBTC and Bithumb exchanges, respectively.
The alternative bitcoin currency peaked last month after Segwit2x failed to launch. For a limited time, BCH/USD appeared to be trading inversely with the original bitcoin, which declined sharply following the Segwit2x news.
BTG/USD Price Levels
Bitcoin gold, a more controversial hard fork that emerged in October, has declined sharply this week. At last check, BTG/USD was down more than 9% at $275 for a total market cap of $4.6 billion.
Trade volumes over the last 24 hours amounted to $155 million thanks to South Korean trading desks. Bithumb processed roughly half of all BTG transactions on Wednesday.
The cryptocurrency has fallen below a key zone of support near $305, which could lead to a re-test of the $250 region. Price action has been significantly weaker over the past two days, with prices falling below the 100-day simple moving average (SMA).
The BTG/USD exchange rate spiked toward $400 last month amid general euphoria in the cryptocurrency market. The project has faced heavy criticism from the blockchain community after developers refused to publicize the fork prior to launch. Some analysts also identified several “scammy” URLs associated with the cryptocurrency. Although BTG has largely overcome the initial suspicion, it has struggled to hit its stride.
While it would be easy to say that bitcoin is hogging all the spotlight, that isn’t necessarily the case when one looks at the broader cryptocurrency market. At the time of writing, 19 cryptocurrencies were valued at $900 million or more, with the likes of IOTA, Monero and Stellar Lumens putting up strong gains. A total of 86 coins are worth at least $100 million or more.
As for bitcoin (BTC/USD), the meteoric rise continued early Thursday, with prices jumping nearly 7% to $14,110. The world’s leading cryptocurrency has added a staggering 45% over the past five days, triggering renewed valuation concerns.
Bitcoin first crossed $10,000 Nov. 29, which was about one month earlier than the forecast given by several prognosticators. It is unclear just how much bitcoin has left in the take, but most long-term evaluations are painting a very bright picture. Of course, the interim period is expected to remain volatile as markets come to grips with a five-figure cryptocurrency.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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