If you have been paying any attention at all to the crypto market over the past several days, you’ve seen some huge swings. Bitcoin Cash (BCH) specifically has really been moving. There were many factors involved, but what kicked it all off was the cancellation of the SegWit2x fork. Leading up to this cancellation, Bitcoin Cash was trading in the low $600’s for several days. At its peak, the currency reached over $2400, with swings of more than $1000 taking place.
As of this writing things have settled down a little bit right around $1350. The question traders are going to have is whether this is just a little bit of a rest period in all the action, or if the roller-coaster is actually over.
Recovering from SegWit2x Cancellation
The first and biggest cause of the commotion, the cancellation of the SegWit2x fork on Bitcoin, is starting to wind down. While this will have a long lasting impact on crypto in general, most people have now accepted it and made most of the adjustments that they plan to make in response to it. The backlog of Bitcoin trades that was building up is being processed through, and things on Bitcoin itself are really settling down and starting to go up again.
Korean Pump & Dump
In addition to the SegWit2x cancellation, there have been many reports of large traders from Korea working together to pump the prices of Bitcoin Cash way up. Some people believe this was being done in an attempt to push BCH into the lead spot in the crypto world, and others believe it to be intentional pumping so that they can take massive profits. Regardless of what side of the argument you take, there is no doubt that the Korean push is starting to slow, at least for now.
The big question at this point is whether Korean investors (or others) will begin pumping it up again to try to generate more profits, or if it will be allowed to settle down. Most ‘average’ traders seem to be hoping that there is some calm in the market for at least a few days so they can regroup. From our outlook, it seems like the bulk of the craziness is behind us. Of course, that doesn’t mean something new may take place to start shaking things up again soon!