Complacency may well have crept into the cryptomarket in recent weeks, some particularly tight ranges across the majors raising questions on whether the market will ever be the same again.
Wednesday’s sell-off was certainly a reminder of just how choppy the markets can get for no apparent reason, with the Bitcoin Cash hard fork and battle between the 2 camps have been headline news for a number of days and certainly not a market shock to deliver Wednesday’s blow.
Putting it into perspective, Bitcoin’s 8.31% slide may be alarming when looking at moves in recent weeks, but the reality is that even listed companies on the global equity markets have seen bigger swings in recent days and that’s not even considering the pot stocks that have demonstrated volatilities comparable to the cryptomarket of old.
Was that the bubble burst, or just another speed bump on the way to a mature market?
It’s far too early to tell and how the market responds to Wednesday’s sell-off will be key, as will the outcome of today’s Bitcoin Cash hard fork, the ultimate issue being the lack of decentralization if a 51% attack can bring down an entire blockchain, where the nodes and general network are supporting one side and the mining power supports the other.
A lack of general consensus across exchanges on how to handle the hard fork has also added to the negative sentiment felt across the market, with exchanges announcing a freeze on all BCH trading and transactions ahead of the hard fork and decisions to wind up BCH futures in fear of price manipulation amongst some of the issues the market has been facing this week.
Looking at where support sits for the rapidly approaching hard fork, Bitcoin Cash SV’s futures price stood at 0.3683 BCH at the time of writing, down 10.1% over the last hour after a relatively range-bound morning. Bitcoin Cash ABC futures stood at 0.64211 BCH at the time of writing, up 8.2% over the last hour, futures prices have provided some support to Bitcoin Cash, which has found support from the futures moves, up 0.92% to $457 at the time of writing.
Hash rates will tell a different story however and, with Bitcoin miners jumping over in search of a quick hard fork Bitcoin Cash SV, Bitcoin’s hash rate has been on the decline through November, falling from a 1st November 60.4225E to 14th November 47.3755E, the downward trend contributing to the negative bias seen in Bitcoin over the last 2-weeks.
For Bitcoin Cash, the hash rate has been steadily rising, up from a 1st November 3.5427E to a 14th November 4.9332E, though for Bitcoin Cash and the broader market, the interest will be more on the hash rates for Bitcoin Cash ABC and Bitcoin Cash SV later today…