After the cancellation of SegWit2x, there is only BCH roaring on cryptocurrency platform. Bitcoin Cash surpasses Ethereum now but how far it will sustain its momentum. We still have yet to see.
Bitcoin Cash surpasses Ethereum
BCH has surged more than 30% to its highest since August, topping down Ethereum to be the second most valued cryptocurrency after Bitcoin. The currency jumped from $600 to a recent high of near $900. Its trading volumes have also soared to $2.8 billion.
The BCH price is up more than 150%. The majority of digital currency demand is concentrated on cryptocurrency exchanges located in South Korea. It is unclear whether the Bitcoin cash price will be able to sustain this rally. But it will likely depend on how merchants respond to rising bitcoin transaction fees.
Bitcoin hit a record high of $7,879.06 after SegWit2x cancellation, but quickly fell and was trading 9 percent lower near $6,500, according to the data. That marked its lowest since November 1.
Cryptoassets author Chris Burniske has commented:
“You can see people playing back and forth between bitcoin and bitcoin cash trading depending on where they think near-term catalysts may be.“It’s been a battle of investors versus traders that were stockpiling bitcoin to get their ‘bitcoin2x dividend.”
Bitcoin Cash transaction issues
Moreover, speculators claim that the rise in BCH comes primarily from the recent postponing of the SegWit2X update. Thus, many investors have sold off large portions of the BTC and contributed to the staggering drop in the currency. The update would have sped up transaction speeds for the currency. As transaction speeds and congestion remain an open question, investors are turning to faster alternatives.
Similarly, many users, who are keen to sell BCH, were having difficulties accessing their BCH because they have to get the coins from custodial wallets.
For instance, Coinbase has yet to release BCH for users who were holding BTC at the time of the fork back in August. Some predicted that the craze of this BCH may end soon after the users will receive their coins.
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