There’s never a dull moment in the crypto economy. Following weeks of steady advances, the bitcoin price encountered a significant correction last weekend — its first since early September — at the hands of a surging bitcoin cash.
But, following a flurry of trading that briefly saw bitcoin cash surpass Ethereum for the second position in the market cap rankings, things appear to be settling down closer to their previous levels.
Bitcoin Price Recovers to $6,550
To the surprise of many, the cancellation of the SegWit2x hard fork triggered a bitcoin price decline and led to a significant transfer of capital from bitcoin to bitcoin cash. The decline was so precipitous that bitcoin dropped below $5,600 — a pullback of nearly $2,000 from its all-time high. As recently as yesterday, the bitcoin price was trading as low as $5,714, but Monday morning it initiated an $800 rally that has returned it to a present value of $6,564. Bitcoin now has a market cap of $109.5 billion, which account for approximately 54% of the total crypto market cap.
Bitcoin Cash Price Drops 22%
Bitcoin’s rally, like its weekend decline, was inversely correlated with the trajectory of the bitcoin cash price. Bolstered by bitcoin’s reluctance to implement scaling solutions that would immediately reduce transaction fees to levels that would enable it to function as “electronic cash”, the bitcoin cash price exploded to a new all-time high just below $2,500. However, since then, the bitcoin cash price has plunged back to a present level of $1,136, which translates into a 24-hour decline of nearly 22%. This leaves bitcoin cash with a $19.1 billion market cap.