After months of stability, Bitcoin saw it’s price drop suddenly last week due to the ongoing Bitcoin Cash hash war. More than $1,000 has been wiped of Bitcoin in last week. Now Bloomberg intelligence, the asset analysis service by Bloomberg, predicts that the price of Bitcoin could fall even further. The price predicted by BI is $1,500.
Travis King, Founder of hedge fund Ikigai says:
“There’s a small chance that, it’s difficult to estimate, that something really bad could happen related to Bitcoin Cash that could then impact the entire crypto market.”
One of the theories for the current market crash is due to the support for both the split Bitcoin Cash chains which is sucking investments away from Bitcoin. The Bitcoin Cash Hashwar is already costing Millions in losses to the miners, according to Bitmex Research both the camps have lost over $6 Million until now and will occur more losses if they keep continuing the Hashwar.
To cover up for the losses, both the camps are selling their BTC Holdings and are borrowing hash rate from the BTC mining which is causing a net loss to the whole ecosystem. Both the parties don’t seem to stop anytime soon, Calvin Ayre has said he will continue the war for “Months” until BCH ABC becomes irrelevant. Jihan Wu from Bitmain has also commented that he will everything it takes to protect the BCH Chain.
The entire cryptocurrency market is down by 33% in the last 48 hours. Cryptocurrency markets are at $146 Billion from the previous market at $210 billion. Bitcoin has dropped below $4,500 to $4,392 before being supported and rising till $4,500.
The next major support for Bitcoin is $3,500. Bitcoin Cash (Bitcoin Cash ABC) is down by more than 40% in just a day and has been overtaken by Stellar (XLM) in the Market cap.
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