When it comes to the bear phase of crypto market, if there’s one cryptocurrency which has suffered the most, it’s Bitcoin Cash. Since 7th of November the price of BCH has dropped as much as 67% from $640 to $210 at the time of writing, and during the early hours of today’s trading in US markets it also touched $190 at one point. The question is… what’s driving this free fall of Bitcoin Cash? Is it just the recent fork? Or some other factors are also at play? The answer, unfortunately, is not as plain and simple as we would want to see.
First of all, some background. BCH had dropped from $640 to $450 even before the fork and starting of hash wars. That was partly because of the possibility of fork and partly due to the ongoing bear market. When the hash war began between BCH ABC and BCH SV, things got even tenser and today the $200 support level was breached. A 25% drop has been registered within last two days, and despite BCH ABC winning the hash power war hands down the trend of its decline is not showing any signs of reversal. Why is it so?
The reason, according to analysts, is the still uncertain future of Bitcoin Cash despite the victory in hash power war. The members of Bitcoin Cash SV camp, who are led by Coingeek, Calvin Ayre and Craig Steven Wright, are still threatening the ABC community that they will not bother to negotiate anymore and there will be a permanent split of the chain, post which BCH SV will no longer be regarded as a fork of Bitcoin Cash. Calvin said in this regard:
“CoinGeek now feels there is no point in negotiating. If ABC puts replay protection in to permanently split the chains we will ensure that nobody bothers them again. They can keep BCH as BSV is not the original Bitcoin Cash its the original Bitcoin.”
This doesn’t mean that Bitcoin Cash is not going to recover – that’s certainly not the case. It will recover once this ongoing feud comes to a conclusion and both factions part their ways, but things are not going to settle down anytime soon. In the short term, we can expect the price of BCH to drop even further.