Bitcoin’s recent rally to over $9,000 and its subsequent bullish January window has been hard to pin down. Some are looking at the increase in institutional interest as one reason while others believe that issues in the global markets and the threat of a recession could be driving things.
What is quite clear though is this latest Bitcoin rally has come with some interesting moves for certain altcoins – in fact, BitcoinSV’s rise in price by almost 100 percent in one day could be another catalyst for the current good sentiment around the cryptocurrency market.
Although, while Bitcoin has been up, and steadily growing, the volatility surrounding altcoins has sprung into life. Some will no doubt see this as a good thing, as the markets have been relatively quiet since Q2 of 2019, while others will say it points to more swings coming, especially from altcoins which have had a rollercoaster ride.
BitcoinSV is an interesting case as the fork of Bitcoin Cash that was seen as the less successful option, run by the controversial Craig Wright, suddenly rose in price by over 100 percent earlier in the week.
Most of the price action around BitcoinSV has been centred around Craig Wright with some even suggesting that it was the man himself moving money around that was causing the spike in BitcoinSV’s price. Wright has been involved in a court case that could potentially unlock billions in crypto assets.
However, the price pump from BitcoinSV did not last long. It managed to top $450, a move of 200 percent in just three days but has fallen back to $253, more than 40 percent in a short space of time with news emerging that Wright does not have the private keys to the crypto billions.
Other coin’s on the rise
At the news of BitcoinSV dropping, it was not too surprising to see Bitcoin Cash rally as a direct competitor. Bitcoin Cash continued its upward ascent yesterday, gaining more than $100 on its price – a 48 percent spike – in just one week.
Another coin that has had a similar growth spurt is Stellar which enjoyed a 15 percent spike following a $31 million funding round for the Stellar-enabled Lightnet network. These moves from altcoins are good news for the overall cryptocurrency market but do introduce a lot of market timing and volatility back into the space.