The cryptocurrency market is experiencing a complex shakeup this weekend, with a recently created digital token called Bitcoin Cash (BCH) up almost 130% in two days, even after retreating substantially from an even bigger spike. It was trading up more than 50%.
Bitcoin Cash was itself an outcome of this dispute.
Soon after the Bitcoin Cash touched its all-time high it was for little time that it could sustain this surge strongly and has been showing huge volatility since then.
Ethereum, the second most valuable cryptocurrency by market cap after bitcoin, was down 3.46% at $304.77.
However, many of bitcoin's core developers opposed it and most miners and many businesses supported the change. Ethereum founder Vitalik Buterin even chimed in on the news in a tweet late Saturday night to congratulate the coin's main backers.
Experts think bitcoin's crash and bitcoin cash's rise are related to the same thing: a planned upgrade to bitcoin's network being called off. But at 2:40 p.m. ET on Friday, it was trading down 7.2%, at $6,812.
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While Bitcoin has corrected by almost 30% from its all-time high, Bitcoin Cash, on the other hand, is gaining significant momentum and recently touched its all-time high of $2477 by crossing $41 billion in valuations and toppling down Ethereum to be the second most valued cryptocurrency after Bitcoin. Both Segwit2X and bitcoin cash were conceived with the same intention to help bitcoin scale faster by increasing the size of its blocks. The fork's goal was to increase transaction capacity, but many traders also believed it would result in a creation of an alternative currency, as with a couple of previous forks.
"When you look at the trends, it does look like many Segwit2X supporters have switched to bitcoin cash", Abhishek Pitto, CEO of Nucleus Vision, told Business Insider. At the press time Bitcoin Cash is trading at $1365.61, according to the CoinMarketCap and it remains to be seen as to how long it can sustain the rally.
Speaking to CoinDesk, Bitcoin Cash developer Juan Garavaglia said the price movements are due to "better planning". "Turns out there were a lot more BCH ideologues than we all thought".
The price for Bitcoin, a form of digital currency, has reached another record high at (R113 366) $7,882.
"[Bitcoin cash] is just being pumped as many other altcoins have been in the past, and inevitably the pumpers will cash out", he said.