Controversial altcoin Bitcoin SV price has crashed 17% overnight and this has led many to be curious for the reasons for the precipitous drop.
January 18, 2020, | AtoZ Markets – Beside Bitcoin (BTC), there’s almost no other crypto asset that has been talked about as much as the Satoshi Vision fork (BSV) over the past week. The past seven days for the now-fifth largest cryptocurrency by market capitalization have been rather tumultuous. Bitcoin SV price started the week by exploding higher from just above double digits to a high of $440. This, however, represents a nearly 200% rally in three days.
But as fast as the asset has rallied, so too has it collapsed. As of the time of writing this, the third-largest chain with “Bitcoin” in its name is down 18% in the past 24 hours, a period during which BTC, Ethereum (ETH), and other market leaders gained 4%, sometimes more.
2 possible reasons Bitcoin SV price has plunged 40% from local peak
Over the past few days, since hitting $440, Bitcoin SV has fallen off a proverbial cliff, crashing almost as fast as it rallied. As of the time of writing this article, BSV is trading 40% lower than its $440 peak, changing hands for $259.
This leads many to ask the question — what led to this oh so precipitous price drop?
1# Lawyer says Wright has no private keys
Wright does not have the private keys that can be used to access the billions of dollars worth of BTC that Satoshi Nakamoto most likely mined when he was one of the only Bitcoin users.
“The file that he’s received did not include private keys,” Andres Rivero, partner at Rivero Mestre law firm, told Decrypt.
With rumors that Wright has access to the keys seemingly coinciding with much of the buying pressure in the last week, this report, along with other observations that Wright may not have the keys he purports to have at the moment, could have contributed to BSV’s decline.
2# Is the price surge based on questionable market activity?
A renowned crypto analyst, Nicholas Merten has argued that the recent surge in the price of Bitcoin SV may be related to questionable market activity. Hence, the bullish trend may not last.
Ignore the price moves of $BSV. Only $35.6M of volume is from exchanges open to US traders. The other 99.4% of daily volume is made up of mainly no-name exchanges and known wash trading exchanges that still deceive this space. They can basically dictate a false price.— Nicholas Merten (@Nicholas_Merten) January 14, 2020
Others have expressed a similar viewpoint. Saunders of Nugget’s News argued that “history has not been kind to those who acted on emotion rather than rationale.” He further noted that the recent Bitcoin SV price rally is seemingly one based on emotion and not on rational thought.
What do you think about the Bitcoin SV price crash? Let us know in the comments section below.