The Bitcoin Cash price (BCH/USD) has fallen to two-week lows well below the $500 mark following a big crypto sell-off that might have been triggered by concerns over BCH’s upcoming hard fork.
The fourth-largest digital currency on the market suffered heavy losses yesterday, with its price falling to a two-week low of $421.20, largely due to a sharp drop in the afternoon that appeared to be part of a market-wide sell-off. However, unlike many of its crypto peers, Bitcoin had already been on a downward trajectory before the plunge, having fallen by 6%, to around $480, in the morning session. The decline was likely driven by concerns that the Bitcoin Cash hard fork, which is set to occur later today, could result in a chain split. The coin finished the session at $439.31, well below its opening level of $511.63.
Brian Kelly, the founder and chief executive officer of BKCM, Brian Kelly, suggested that these concerns might also be responsible for the wider crypto market crash.
“People started selling. That triggered stops. Everybody got concerned,” Kelly told CNBC yesterday. “And that’s what happened today — the entire market sell-down.”
Bitcoin Cash had forks usually occur twice a year and are meant to carry out important upgrades to the BCH protocol. This time, however, there will be a competing proposal from a blockchain group called NChain. This could lead to two BCH chains existing independently from one another.
While the coin had a mildly positive start to today’s trading, with its price rising to an intraday high of $453.62, it eventually lost its momentum and returned to the negative territory. As of 14:45 GMT, the Bitcoin Cash price stood at $422.68, down nearly 12% from the same time yesterday. The coin’s total market cap currently stands at $7.38 billion, according to data from digital currency tracker Coinmarketcap.