In the past two days, this volatility and range expansion has been taken to a whole new level. We’ve seen absolutely huge moves, with clients extremely active in bitcoin and bitcoin cash.
The big news, if true, is that some are now speculating that bitcoin cash, which forked out of bitcoin in August, could indeed hold a larger market cap over bitcoin and certainly over Ethereum in the weeks ahead. That is a big ‘if’ given bitcoin cash’s current market cap is still just 25% of that of bitcoin’s $95 billion market cap. But that is the sentiment seen in the market right now and is backed by talk (source: Fork.lol) that miners are finding it more profitable and are subsequently putting more effort into mining for bitcoin cash over bitcoin. This seems key.
There seems little doubt that the moves have been spurred from last week's failed fork and the lack of consensus from developers, with the subsequent decision not to go ahead with the much anticipated “Segwit2x”. This would have allowed greater capacity and ability to transact using bitcoin, so the failure to push this through and ‘fork’ has seen huge capital rotating out of bitcoin and into bitcoin cash. Bitcoin cash is seen as the better store of wealth due to its potential for commercial purposes, and having an identity and clear investment case is so important to further appreciation in this space.
If you see crypto as a store of value or wealth, then a number of big players in the market are saying bitcoin cash is now your preferred vehicle to express this view.