A Review Of The Market Dynamics Of Bitcoin SV
In this article, we study what is happening with the scandalous Bitcoin SV: what its place in the market is, how, and why its price changes so rapidly.
What is Bitcoin SV
BSV is the result of the scandalous Bitcoin Cash hard fork that happened in November 2018. The development of Bitcoin SV was taken up by nChain researcher Craig Wright, who proclaimed himself Satoshi Nakamoto, and his currency — the real Bitcoin. SV in the name means “Satoshi’s Vision.”
- Technically Bitcoin SV is Bitcoin Cash with an increased block size (now 128 MB, but the creator of the network wants to increase it to 2 GB).
- The main principle of BSV is to minimize transaction costs.
- Craig Wright, as the curator of Bitcoin SV, refused smart contracts, decentralized applications, and global updates of the Bitcoin network (the reason is that they allegedly contradict the original concept of Bitcoin).
Bitcoin SV Price: dynamics and reality
The attitude to this cryptocurrency is extremely arguable, so its price can easily change.
In the winter of 2020, the price of BSV increased significantly ($441.20 on January 14). However, then the price began to fall again ($107.14 on March 13).
At the end of March 2020, there was news that some miners occupied almost half of the hash rate of the Bitcoin SV network. Probably, this also influenced the partial BSV price increase.
Partial price recovery was helped by the news saying since March 15, 2020, for 10 days, unknown miners gained access to computing power and almost half of the Bitcoin SV network hash rate.
The pressure on the price of both Bitcoin and its two derivatives — Bitcoin Cash and Bitcoin SV from the miners before the BSV halving that took place on April 10, 2020, was significant. Moreover, opinions and forecasts about the movement of value were chaotic and controversial, without the predominance of any point of view.
How did BSV behave after halving? On the day of halving, the price dropped by about 10% (for major cryptocurrencies, the situation on that day was similar). But globally, it began to change only at the end of June. So, BSV halving in the short term did not affect and did not give answers to experts.
If you look at the movement of Bitcoin SV over the past month, you can see a picture like this. At the beginning of the analyzed period, the price was $193.81 (June 10). Until July 5–6 it was a steady trend of falling prices to the lowest point of $151.94. Then, on July 6–7, a sharp increase to $192.04, after that a slight decrease to $181.63.
A significant drop in the Bitcoin SV price was at the end of June. It coincided with a BTC price drop. We examined the reasons in detail in the review “Bitcoin June Roller Coaster: why BTC price began to jump”: the reaction to the stock market indices drop due to protests in the USA, unemployment, and a new wave of COVID-19 without the US dollar emissions on the background.
Traditionally, TradingView shows in-depth analysis. As you can see, insufficient support and weak factors do not allow BSV to break through the “ceiling” of $225.42.
Price increase for almost 25% with the growth of other cryptocurrencies on July 6 was affected by the after-weekend growth trend in commodity and crypto markets.
As you can see, Bitcoin SV is an unstable but interesting cryptocurrency. Its price is strongly influenced by many factors, but the potential for price growth is significant.
Disclaimer: This article is for informational purposes only and does not call for any transactions or cryptocurrencies.
Originally published at https://coinjoy.io.