Bitcoin Cash is fast becoming a trader's favorite thanks to BSV drama

02 May, 2019 | Updated: 02 May, 2019
by Will Heasman
Price Analysis
Bitcoin Cash is fast becoming a trader's favorite thanks to BSV drama

While the imbroglio shrouding Bitcoin SV has done nothing but harm the price of the cryptocurrency, it has, apparently, helped to bolster its rival and fork-sibling Bitcoin Cash, which is fast becoming a favorite among crypto traders.

It makes sense, the impending doom of Bitcoin SV (BSV) following the multiple of delisting’s from notable exchanges, such as Shapeshift, Kraken, and Binance, was always going to push investors of BSV back into the relative comfort of a known asset; perhaps an asset which they had been positioned in before.

Furthermore, the fact that this migration to Bitcoin Cash (BCH) was such an obvious move made it a more desirable trading decision, even for those who have previously ignored BCH.

Delisting dump

On the 15th April announced that they would delist BSV thanks exchange boss, Changpeng “CZ” Zhao belief that the creator of BSV Craig Wright was a “fraud.”

For those not in the know, Wright - known by the moniker, “Faketoshi” by the crypto community – recently claimed that he was the creator of Bitcoin, Satoshi Nakamoto. going as far as to threaten to sue anyone who challenged the claim.

CZ, along with many other exchange heads took exception to this, rallying behind those affected by the threat of litigation and promising to delist BSV.  

The threat of delisting saw the BSV price fall instantly, tanking 28% in 24 hours.

BSV/USD Chart provided by Tradingview

  

Comparatively, BCH rose almost 20% following the news: 

 BSV/USD Chart provided by Tradingview

The recent disabling of BSV trading on Kraken has proved this inverse correlation once again, with BCH rising 10% following the news.

  A traders best friend?

Interestingly, even before this Bitcoin SV fiasco, Bitcoin cash was doing fairly well in its own right; marking one of the biggest market gainers following the $1000 candle which kicked off the market rally back in April. Since then BCH has returned a fairly impressive 54%.  

Trader and analyst Luke Martin suggests that BCH’s rise is indicative of its correlation to Bitcoin (BTC), making it his current favorite trade:

Martin goes further, stating that due to this high level of correlation BCH acts like a leveraged long for BTC:

 Martin isn’t alone in this, another notable trader on crypto Twitter, The Crypto Dog, also gave in to the seemingly bullish sentiment surrounding BCH:

So, it seems the BSV fallout, coupled with BCH’s natural correlation to BTC may have created a pretty nice opportunity for BCH; but how long do you think this will last?

Let us know your thoughts in the comments!

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