A week does not go by in the world of cryptocurrency without some kind of drama. Examining the events of the past week and observing the trends of the crypto market, our weekly Market Wrap-up aims to keep you informed of the latest happenings in crypto, even if you’re not the type to peek at your Blockfolio on an hourly basis.
The crypto markets were overshadowed by the drama of midterm elections across the United States, turning attention away from the realm of cryptocurrency, at least for an evening. Of course, there were those who were unable to stay entirely away from crypto during the voting process, with more than $2 million being gambled on midterm election results via the Augur betting dApp.
Returning to the ongoing drama of the crypto scene, Bitcoin Cash drew the most attention in what was a relatively quiet and mildly positive week. The soon-to-arrive upgrade to BCH has caused considerable controversy amongst its community, mostly between two camps; Bitcoin ABC, backed by figures such as Roger Ver, and Bitcoin SV (Satoshi’s Vision), fiercely and somewhat melodramatically supported most famously by Craig Wright, a fiery veteran figure who has claimed to be Satoshi Nakamoto — without ever providing any substantial proof — and is therefore equally admired and derided by opposing camps in the industry.
The two tribes have created an eerily similar atmosphere to the divisive break-up that took place last year when Bitcoin Cash (BCH) split from Bitcoin (BTC) over issues mostly related to block-size limits, SegWit, and passionate disagreements over future implementations such as the Lightning Network. Division within Bitcoin Cash itself is now becoming more likely as the two groups look like they are heading toward a split on November 15, which could erupt into a potential civil war with threats of network attacks and bitter disputes flying to and fro via Twitter.
Poloniex, a popular exchange, has created a future trading possibility, offering both “pre-fork” versions of Bitcoin Cash for trading in an effort to let the market decide on the more popular choice. Of course, this choice will ultimately be up to miners, but it appears that Bitcoin ABC’s solution is the much more popular option, for the time being, anyway. Hodlers of Bitcoin Cash will have the opportunity to own both versions of the coin if a split occurs, which could diminish the value of each coin, but often results in a slight bump in sum value for those who hold both assets. Traders hoping to cash in on this 1:1 fork bonus have caused much of the volatile investment activity over the past week.
The ongoing clash begs the question; just how many “true” Bitcoins will there be after the dust settles?
WAX has also seen a remarkable week of price growth, but unlike Bitcoin Cash, the small market cap token has exhibited much lower trading volume. As mentioned many times previously, traders must be wary when witnessing major price spikes without a correlation in trading volume. Basic Attention Token (BAT) has experienced a great deal of investment activity as well after launching on Coinbase. However, just as Coinbase launched token 0X (ZRX) to initial enthusiasm followed by a disappointing drop, the excitement for BAT has already tumbled significantly.
A few other major coins lost market momentum over the past little while. Reddcoin continues to wane in value following its lacklustre Redd-ID launch a number of weeks ago. Dogecoin also continues to cool, losing value steadily since its bizarrely frenzied peak more than a month ago. And Ravencoin, after its exciting climb to mainnet launch and asset issuance functionality, is finally beginning to show a loss of interest in the broader market.
It should be noted that all of these observations are just that — observations I have made about the market over the past week. This is not professional financial advice and is intended only to act as a quick wrap-up of the week’s events for you to enjoy. Please do your own research before doing any investing and never risk more than you can afford to lose.