Ripple (XRP) Briefly Takes over from Ethereum as Market Crashes amid the Bitcoin Cash (BCH) Hash War
Yesterday, Dr. Craig Wright announced on Twitter that he was prepared to take Bitcoin (BTC) all the way down to $1000 if that what it takes to win the Bitcoin Cash hash war. The self-proclaimed creator of Bitcoin and chief scientist at blockchain development firm nChain, who is estimated to own millions in BTC, is working with Calvin Ayre of Bitcoin Cash mining pool CoinGeek to ensure their fork of Bitcoin Cash wins over the fork of Bitmain-supported BCH development firm Bitcoin ABC.
However, Roger Ver, CEO of Bitcoin.com and supporter of the Bitcoin ABC fork, doesn’t have much faith in Wright’s ‘Satoshi’s Vision‘ (SV) fork. He has put the odds of Wright’s team winning the hash war at 10:1 against. Jonathan Bier, head of research at cryptocurrency exchange giant BitMEX, echoed the statements in a recent interview with Bloomberg.
“The chain will split in two, but the economy will support ABC and reject SV (Satoshi’s Vision). SV will have a low price and miners will leave it in a few weeks. That is my prediction.”
Irrelevant of who wins, the hash war could potentially destroy Bitcoin Cash and take down the rest of the cryptocurrency market with it. Today’s market slump could be a result of Wright or another whale selling BTC to fund the hash war. Analysts have also pointed out that Bitcoin CME futures reached a trading limit yesterday, causing a cascade of stop-loss orders going into effect. Another popular theory doing the rounds is that investors are cashing out ahead of the annual ‘Black Friday’ Christmas sales. However, it’s highly unlikely that even a large percentage of small-time investors cashing out could have such a drastic effect on the market all at the exact same time.
Whatever the cause, it’s providing an excellent buying opportunity for new investors to get into cryptocurrency at a low level. While the drop may initially scare off some panic sellers, as it levels out the low price should attract new money.
Bitcoin (BTC) is currently down 12 percent at around $5,500, its lowest level since October last year. Critical supports lies at $5,300 which, if breached, could initiate an accelerated decline. The market slump appears to be slowing though, with the majority of coins trading horizontally for the past few hours.
Ripple’s XRP token is weathering the storm best and briefly took second position from Ethereum on market cap charts, with a market cap of $18 billion. Ethereum’s 14 percent loss today took its market cap down to $17.9 billion but it has recovered since to over $18 billion.