Emancipating various conjectures leading to the rise of Bitcoin Cash price.
Fluctuation is very rampant in Crypto domain
5 to 10% fluctuation in the prices of the cryptocurrencies is very rare, as it is still, in its nascent stages and hence, it entails high volatility within it. Specifically, it is related to the market size of Bitcoin, which is relatively very low when compared to the other stabilized markets, which indirectly means that a small disturbance in the market would result in a huge fluctuation. Also, the unethical journalistic actions which spread fear, uncertainty, and doubt among the Crypto community acts as a catalyst in driving the market price.
Bitcoin Cash and its uses
Bitcoin cash has been one of the most sorted out, a hard fork of Bitcoin, which has become the center of attraction for most of the Crypto users. In fact, Bitcoin cash is even predicted to replace Bitcoin itself, due to its immense scalability option. It’s upgradable consensus mechanism with growing network, is the backbone for providing scalability. Interestingly, during the time of Bitcoin fork, each Bitcoin holder received an exactly equal amount of Bitcoin Cash as a result of the operation. The high transaction speed and low transactional costs have rendered Bitcoin Cash to become the fourth largest cryptocurrency, according to market capitalization.
The general bullish nature of Bitcoin Cash
Bitcoin Cash has been one of the most popular cryptocurrencies and followed by many of the crypto investors, in particular, it has the ability to reach skies within no time. It’s recent listing on Coinbase, in January 2018, resulted in the breakout of most of the resistance levels in the Bitcoin Cash chart. Also yesterday, i.e, 26th September 2018, experienced an unexpected price surge, gaining over 20% within a span of 2 hours itself. The market capitalization of Bitcoin Cash, as a result, has reached $9 billion after adding $1 billion to it. This has spurred a chaos in the cryptocurrency market, in particular, the Bitcoin cash community.
Why did Bitcoin Cash price rose, all of a sudden?
Specifically, Bitcoin Cash was trading around $430, when it experienced a high amount of buying pressure. Followed by which, it broke out its resistances and reached almost $524, post which the price of Bitcoin Cash got consolidated. Both the 100 day EMA, along with MACD, points out at the Bullish momentum of the cryptocurrency coin. As the experts try to find out the underlying reason behind this activity, they have reached to a conclusion that it is most probably due to the Initial Public Offering filed by one of the largest Bitcoin mining company, Bitmain. Many professionals in the field predict that a huge part of the fundraising would be assigned for the development of Bitcoin Cash. Therefore, huge masses of people are pouring investments in Bitcoin Cash. This might be the precise reason for the sudden Bitcoin Cash price rise today.
Even Ripple experienced the acceleration along with Bitcoin Cash
Along with Bitcoin Cash, even Ripple also showed immense positive momentum as it grows by almost 17% in the past 24 hours. The combined effect of Bitcoin cash and Ripple directly affected the entire cryptocurrency market. In fact, Ripple had even retaken its position by dethroning Ethereum, in the second position. According to experts in the field, the combined effect is a result of the listing of a cryptocurrency coin on CoinField. There also professionals which are citing the lazy attitude of Google, towards its Crypto ad Ban, therefore, increasing the market capitalization on a general basis. In general, most of the cryptocurrency coins are experiencing growth in this highly volatile week.
Why would Bitmain’s initiative affect Bitcoin Cash?
According to experts, a good chunk of the amount raised would be vested towards the development of Bitcoin Cash, as Bitmain already has generated revenues accounting to $2.51 billion last year and $742.7 million in the first half of 2018. This is due to the market dominance of the company over the Bitcoin mining industry, specifically, accounting for almost 75% of the total Bitcoin mining market. Bitcoin mining has been one of the most profitable occupations but only, when carried out on a massive scale. The investment in Bitcoin cash might be of some use in the future as consistent development has been undertaken with respect to the implementation of its architecture.