Bitcoin Cash traders had an intense night after Kraken opened BCH deposits, with trading volumes reaching nearly half a billion as bulls and bears went head to head.
Following Kraken’s announcement that Bitcoin Cash deposits were now opened, many expected a price fall. But the exact opposite happened.
Bulls started charing towards bear walls, knocking them down. Then they begun flashing their own bid walls.
One as high as 2,000. Movements were so fast we managed to only screenshot an 885 bid.
The two screenshots on the left are around the same time, but as can be seen there is a huge price difference, despite it being the same asset.
That’s because Kraken had a premium of around $100 prior to deposits opening.
As such, traders started buying Bitcoin Cash on other exchanges to sell it at Kraken so locking in $100 of effectively free money for each BCH.
That led to a buying frenzy, with bid walls of near 2,000 on Bitfinex becoming somewhat more common as the bull charge went on with everyone wanting to get in on the price action and the arbitrage opportunity.
A high of $370 was reached on Bitfinex, while Kraken went up to $440. Then, the first deposits reached the required 20 confirmations.
A brutal sell-off ensued, probably from the new deposits. With price crashing in minutes as everyone started market selling, sending it down to around $310.
A brief bounce followed to the near recent high, but the selling wasn’t over, with market sell order of 1,000 or more seen during this period.
Everyone was racing to get out as soon as possible, but the $100 premium then closed, so price stabilized at around $320, moving towards what seems like another bull-run today.
That may be because whoever wanted to sell may have done so by now with many prominent bitcoin exchanges listing Bitcoin Cash for trading.
As such, the road may now be clear, with normal trading seemingly resuming and volatility perhaps reducing, at least to some extent.
The network is also producing blocks in a more regular intervals now, so its initial rocky period might be behind it.
So turning attention towards merchant adoption, with some already adding it. As well as the implementation of Flexible Transactions to fix malleability, a reinstatement of features that have been removed – such as some bitcoin scripts that allow for codeable money functionalities – and so on.
But for many, its main feature is the fact that it exists at all and that it was able to very smoothly and successfully chain-split hardfork, creating a more than $5 billion market cap in order to follow a roadmap of peer-to-peer digital cash.