The Bitcoin Cash price (BCH/USD) has fallen sharply amid what appears to be a sharp correction affecting the wider cryptocurrency market.
The Bitcoin offshoot had a mixed performance in yesterday’s session, swinging between gains and losses. The digital currency saw performed strongly in the morning session, which allowed it to surpass the $1,500 level for the first time since February 20. The Bitcoin Cash price hit an intraday high of $1,560, but its performance worsened significantly in the latter part of the session. The cryptocurrency closed the session at $1,426.42, which was actually lower than its opening price of $1,434.01.
The downtrend in Bitcoin Cash’s has persisted throughout today’s session, with the coin’s price having dropped below the $1,300 mark. According to data from cryptocurrency tracker Coinmarketcap, the Bitcoin Cash price is currently hovering around $1,279.
Recent comments by Fundstrat’s head of research, Tom Lee, may have contributed to the Bitcoin Cash decline. During an appearance on CNBC’s “Fast Money” programme on Tuesday, the analyst indicated that he favours investment in the original Bitcoin over BCH. While acknowledging that both versions “have merits”, Lee said:
“But if I were putting new money to work today - a fresh dollar - I would be a lot more interested in buying a laggard that could attract inflows as opposed to something that’s already potentially overbought.”
Bitcoin has been on the rise over the past couple of weeks. Even with the recent slump taken into account, the coin has nearly doubled its price over that period. Some analysts, including Lee, have suggested that the gains have been in part driven by growing excitement over an upcoming hard fork that aims to increase BCH’s maximum block size to 32 MB.
In today’s trading, the Bitcoin Cash price stood at $1,278.90, as of 15:07 BST. The cryptocurrency has lost 13.85 in the past 24 hours.