The Bitcoin Cash price (BCH) selloff intensified over the last two days amid the broader market selloff. The fourth largest coin slumped 12% early today to the lowest level in the previous month. The BCH coin price is down $800 from May 6 where it reached $1,800.
Although the Bitcoin Cash network achieved a number of milestones in the last couple of months[1], the coin price hasn’t been responding to those developments.
The experts, however, explain that cryptocurrency market movements are always based on traders mood and emotions instead of underlying developments and economic factors.
Indeed, the stock market and other securities also follow trader sentiments, but their moves weren’t as awkward as the cryptocurrency market had presented in the last two years. This contradiction is mainly due to the regulated nature of stock markets combined with the concept of fair value.
Daniele Bianchi Claims: Only a Handful of Coins will Survive
The report from Daniele Bianchi, an assistant professor of finance at Warwick Business School, shows that the movement[2] of the 14 largest cryptocurrencies mirrors traders hype and emotion.
Dr. Bianchi’s study shows a lot of similarity among the cryptocurrency market and the dot-com bubble between 1997 and 2001, saying only the handful cryptocurrencies will survive in the long run.
“Most of these cryptocurrencies come into existence through unregulated crowd sales similar to IPOs, the so-called Initial Coin Offering,” Dr. Bianchi said.
Bulls are Optimistic for Uptrend
Bulls and market experts are showing strong confidence in Bitcoin Cash price upside potential since its developers have upgraded the network to 32 MB – which has improved transaction processing time and fees compared to many other counterparts.
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