Bitcoin’s price has risen by some $250 since yesterday after its first chain-split hardfork was finalized with the Bitcoin Cash network seemingly starting to operate as normal.
Volumes remain somewhat low, below $1 billion, while bitcoin is nearing its resistance line of $2,900 which it has been unable to cross recently.
It remains to be seen whether it will be able to do so this time, but the recent rise is in many ways unsurprising as it’s what happened with eth shortly after their hardfork last year.
With Bitcoin Cash deposits now opened on Bitfinex and Bittrex, many may be selling them for bitcoin, lowering BCC/BCH’s price while increasing that of BTC.
But after the initial herd selling, the price of Bitcoin Cash might become too cheap, which could lead to a reverse price action whereby everyone sells their BTC for BCC/BCH.
It’s what happened with eth. Soon after it was listed on Poloniex, everyone sold their ETC, sending its price to pennies with the gains invested in ETH.
But then ETC became so cheap, everyone started buying it, kicking in Fear Of Missing Out (FOMO) and one of the greatest price rise in 2016.
While at the same time ETH went down, with their community panicking in fear ETC might actually overtake them in price after it rose to some 50% of ETH’s value, leading to all ETH devs saying they are working 100% on ETH.
The main selling point of ETC was simply that it’s cheaper, which applies to BCC/BCH. But whether history will repeat itself or rhyme remains to be seen.
For now, we can just enjoy what appears to be some quietness as the last summer month continues to progress in days with the summer craze of 2017 excepted to give more before it gives way to beautiful Autumn.