Tuesday’s cryptocurrency slump has yet to be forgotten and the cryptocurrencies have certainly not looked like clawing back the losses, with Bitcoin sitting down 4.05% at $10,924.94 at the time of writing.
Alongside Bitcoin, Ethereum has fallen back to sub-$1,000 levels with an 8.34% decline through the early part of the day, with Ripple doing its best to stay above the psychological $1.00 level.
It’s not quite a bloodbath from a cryptocurrency perspective, but if sentiment doesn’t turn around soon, another drop could be on the horizon.
While the majors are in a slump, with Cryptonites across the world licking their wounds pondering on what’s next for the markets, there’s a beacon of light in the markets in the form of Bitcoin Cash.
Following Tuesday’s 18% decline, which wasn’t too bad considering some of the losses elsewhere, Bitcoin Cash has recovered from an intraday low $1,591.9 in the early hours of this morning to $1,768.2, marking a 3.23% gain at the time of writing.
While the gains not be considered significant when comparing it to historical moves across the cryptocurrencies through the latter part of 2017 and the first few days of this year, the divergence could become a significant moment in the Bitcoin Clan’s future and, more importantly show signs of which of the three will most likely progress to become the vision of Satoshi Nakamoto and become a realistic competitive alternative to fiat money.
It may be too early to call, but it’s certainly worth considering, particularly when the cryptomarkets continue to get bombarded with negative news, almost on an hourly basis.
Let’s face it, Bitcoin Cash has almost negligible transaction fees, while Bitcoin’s is material and that’s before considering block sizes and of course, transaction speeds.
Bitcoin transaction speeds alone make it an unviable alternative to fiat currency.
While there’s plenty of talk of regulation and the shutting down of exchanges, with BCC Token holders the latest victim of regulatory oversight, an alternative to fiat money will come in some shape or form and Bitcoin Cash may become the market’s choice and the decision may come sooner rather than later, with the market’s hand being forced by events through the first half of the week.
A Bitcoin Cash move through to $2,000 levels would certainly cement Bitcoin Cash’s position over the near-term as a Bitcoin’s main rival, with Litecoin on the ropes.
The market’s will need to reconsider how it views Bitcoin however, which still seems to be the cryptomarket pet, in spite of all of its short comings.
Looking at the hashrates, Bitcoin miners may not yet be convinced of a paradigm shift in market preference between the two, with hashrate divergence favouring Bitcoin based on yesterday’s figures. Today’s figures may tell a different story however, though these will not be available until tomorrow.
The day ahead will more than likely see further volatility, with the only saving grace being that there’s unlikely to be any more regulatory chatter from Asian governments until tomorrow.
Bitcoin Futures haven’t thrown in the towel just yet, with February’s contract sitting at $11,320, though one wonders whether the markets will pay any attention with the key drivers coming from elsewhere.
This article was originally posted on FX Empire
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