Aside from the latest Bitcoin news which show that BTC is aiming at $9,000 next, there were many other altcoins seeing greens in this new rally. If you were following the news last week, you probably know that Bitcoin SV (BSV) was a major topic of discussion. But why did Bitcoin SV became a hot topic besides from exploding higher to a high of $440 – in a rally of 200% in only three days?
As fast as this asset has rallied, so it has collapsed. This is something that many investors were afraid of – and something that happened. At press time, the third largest chain with “Bitcoin” in its name is down 18% in the past 24 hours and keeps on tumbling down. This is all in a period when Bitcoin is still growing and the ETH news show increases of up to 4% on the day.
So, why did Bitcoin SV crash 40% from its local peak?
With a current price of $264, BSV is definitely far from what many expected for its short-term trend. The crash certainly coincided with the news that Craig S. Wright – the primary proponent of BSV and a coder and entrepreneur who claims to be Satoshi Nakamoto – does not currently have access to a BTC stash he purports to have. BSV proponents even said that he will use the stash to dump BTC and promote their version of the chain.
All of this has led to uncertainty on the market. As to why did Bitcoin SV fall, the controversial founder of the coin is the main person to blame for that. A report for Decrypt shows that Wright does not have the private keys which can be used to access the billions of dollars worth of BTC that Satoshi Nakamoto likely mined when he was one of the only Bitcoin users.
One popular cryptocurrency analyst called Nicholas Merten (who is also the founder of the DataDash YouTube channel) argued that the recent surge in the altcoin may be based on questionable market activity – and thus may not last.
Ignore the price moves of $BSV. Only $35.6M of volume is from exchanges open to US traders. The other 99.4% of daily volume is made up of mainly no-name exchanges and known wash trading exchanges that still deceive this space. They can basically dictate a false price.
— DataDash (@datadashpro) January 14, 2020
All in all, many still don’t know why did Bitcoin SV fall so much. However, the recent rally in the popular altcoin was definitely one based on emotion and not on rational thought.
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