Speculation leads to Bitcoin Price Drop and Bitcoin Cash Hitting New All-Time High

While many thought that giving up on SegWit2X will lead to an increase the price of Bitcoin, it seems like the move had a powerful impact on its value, thus leading to an abrupt decrease in price. Additionally, it also led to a massive surge of Bitcoin Cash (BCH), an alternative digital currency which hard forked from Bitcoin a few months ago.

With these aspects in mind, Bitcoin Cash managed to reach an all-time high of $2,500 on Sunday, yet it tumbled back down by 60% the following day. On the other hand, Bitcoin dropped down to $5,550 from around $7,500, which is one of its biggest decreases in price to date. Fortunately, the price is now currently trading at around $6,700 thus facing an impressive spike in price once again. However, analysts believe that it may take a bit more before the price fully returns to normal.

The move was likely due to the fact that a couple of supporters for the SegWit2X hard fork which failed last week, decided to turn their focus on bitcoin Cash. While the price decreases to around $1,120, it is now staggering at $1,421.

At this time, analysts believe that the weekend gains for Bitcoin cash were most likely due to speculation from Korea as well. Not only this, but others believe that the price pump for bitcoin cash will likely last for a short period of time.

For those who do not know, some of the main features associated with Bitcoin Cash include its massive block size of 8MB, when compared to the 1MB of Bitcoin. Additionally, the second version offers wipe-out and replay protections, which can end up protecting investors in case other hard forks appear. However, most people tend to support the original version of the digital currency, and support it being updated for better scalability in the future. This will not require a hard fork, but rather a protocol update from the developers working at Bitcoin Core. The SegWit2X hard fork which failed suggested an increase in the block size along with introducing a few other features.

Based on everything that has been outlined so far, it is likely that the Bitcoin price will grow more, thus retaking the $7,000 threshold. However, it will be interesting to see how the Bitcoin Cash price will evolve over the next couple of days, given its newly-reached all-time highs.