Today is a strange day for bitcoin. The currency has fallen below the $7,000 mark yet again and has shed approximately $300 from its price in one day.
Bitcoin Has Taken Another Fall
What the heck happened? The currency was doing so well as of late. It had recovered by quite a few thousand and was potentially moving back up the financial ladder, so why the sudden drop?
Yesterday, Live Bitcoin News reported on the bitcoin cash halving that recently occurred in the middle of the week. The event was being awaited with bated breath by many crypto enthusiasts who were worried about where the price of the currency would potentially go. After all, bitcoin cash – whenever it’s undergone some sort of major change in the past – has tended to influence BTC’s price, and not always for the better.
In 2018, when the currency underwent a hard fork, the price of BTC – which had been meandering about the $6,000 range for most of the summer – suddenly came crashing down and hit $3,500 around the time Americans were celebrating Thanksgiving. This price dump lasted approximately five months, until the currency revamped itself to hit $5,000 in April of next year.
Now, with the bitcoin cash halving, many had taken notice of the fact that nothing had occurred with BTC just yet, but as we’ve seen in the past, sometimes it takes a few days for things to really take precedence in the cryptocurrency space.
In addition to bitcoin cash, bitcoin SV – the spawn of the former coin which came about in late 2018 through the hard fork – also underwent a halving, which means that two of bitcoin’s official brethren went through major changes over the course of one week. Naturally, things were going to hit bitcoin in a negative way.
The big question now is how long the drop will last. Will this only be temporary, or are we going to see further slips here and there as the big daddy of crypto stabilizes itself? It’s probably too early to tell, but there is evidence that suggests either outcome could occur.
On the one hand, bitcoin has proven to be quite resilient over the past few weeks. It’s $3,000+ jump occurred in relatively short time, so perhaps this is simply a step back and BTC will recover faster than many are anticipating.
How Long Will This Last?
However, as mentioned with the BCH cash fork, the effects on bitcoin were relatively long lasting, and while it did recover eventually, it took a hefty period to get there.
Aside from bitcoin itself, BCH and BSV have also taken nasty stumbles following their halving events. At press time, BCH has dropped by more than eight percent, while bitcoin SV has fallen nearly 13 percent over the course of one day.