Bitcoin Cash (BCH) Steel Reeling from Yesterday’s Price Drop
The Bitcoin Cash (BCH) cryptocurrency may look even today, with a minor 0.07% decrease to $134.37 (BCH/USD), but investors are still noticing the effects from yesterday’s major drop.
Bitcoin Cash’s Recent Action
Late Tuesday night, the BCH rate shot from $136.15 to $144.06- a change of 5.08% in just a few hours. This surge didn’t last long, though, with the rate quickly falling down to $133.27 by early Wednesday. The BCH price has not climbed much since then, and it has managed to even out, but there is no indication that the price will shoot back up anytime soon.
What we are noticing is a major drop in trade volume for this token. Over the last 24 hours, around $230 million in Bitcoin Cash tokens have been traded, and while that may initially seem impressive, that’s a drop of 28% compared to the same time yesterday.
It looks like investors are leaving Bitcoin Cash in droves, at least for the moment.
Should Investors Pull out of BCH?
This is a tricky moment for this token, because the market over the last few weeks has started to look bullish overall. With slowing inflation, a rising economy, and more investments in crypto, we could be looking at a new boom for the industry very soon. This recent Bitcoin Cash movement could just be an aberration and not an indication of where the market is headed.
There is a scare whenever investors pull out from a crypto coin in a big way, with worry that it will crash like the TerraUSD coin recently. Bitcoin Cash has more stability and support behind it despite a rough few days last week, but having nearly a third of trades drop off is worrying. That is not a third of investors, however, and there is still a healthy investment of BCH currently. We are simply seeing a drop off in trade volume, which can usually work itself out quickly with major coins like BCH, as long as the market is healthy.
We could see BCH start climbing this weekend in anticipation for the Ethereum Merge and the improved outlook on the global economy.
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