The Bitcoin Cash price (BCH/USD) has seen significant losses ahead of a hard fork that could split the cryptocurrency in two.
Bitcoin Cash saw a sharp increase in Tuesday’s morning trading, with its price surging to an intraday high of $542.68. However, the digital coin went on downward trajectory in the afternoon and eventually gave up all of its earlier gains. The coin finished the session at $512.41, down from its opening level of $514.58.
BCH appeared to have stabilised in the early hours of today’s trading, but the coin suffered another big drop, which brought its price down to sub-$500 levels in the late morning session. As a result of the drop, the BCH price hit an intraday low of $475.29, which was also its lowest level since November 3. Since then, has continued to trade around the $480 level, according to data from digital currency tracker Coinmarketcap.
The Bitcoin Cash price received a significant boost earlier this month, likely due to excitement over an upcoming hard fork that could lead to the creation of two Bitcoin Cash versions – Bitcoin ABC and Bitcoin SV (Satoshi’s Vision). The digital coin hit a more than two-month high of $638.55 on November 7.
Since then, however, BCH has been back on the defensive and it now appears that the majority of traders are expecting the Thursday fork to have a negative effect on the price.
According to a November 13 report from industry website Coindesk, more traders were betting that the digital coin would fall following the fork. At the time of the report, there were 89,457 open BCH short positions on crypto exchange Bitfinex, compared to 53,322 open longs, the website said.
In today’s trading, the Bitcoin price stood at $479.26, as of 14:41 GMT. The coin has lost just over 9% of its value, Coinmarketcap data shows.