Small Forks: BCH and BSV Crushed by Bitcoin Price in 2021

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2022-01-04 04:31:08

Market data shows that Bitcoin (BTC) looks set to beat its forked versions Bitcoin Cash (BCH) and Bitcoin SV (BSV) in price performance in 2021.

Notably, BTC’s year-to-date (YTD) return is nearly 60% at press time as its price hovers near $47,500. By comparison, BCH is up more than 26% to $435.50, while BSV price is down more than 25% to $122.30 during the same period.

But the biggest benefit is still the performance of Bitcoin Cash and Bitcoin SV compared to Bitcoin. Specifically, the BCH/BTC ratio has dropped over 22.50% YTD to 0.00916. Meanwhile, BSV/BTC is down nearly 55% year-to-date to 0.00258 BTC, signaling capital mobility from Bitcoin forks.

BCH/BTC and BSV/BTC Daily Candlestick Price Chart. Source: TradingView

Market Domination

In addition, forked Bitcoin tokens – once counted among the top ten cryptocurrencies by market capitalization – have lost their place to emerging layer one blockchain projects.

Notably, the emergence of Solana (SOL), Cardano (ADA), Terra (LUNA), Avalanche (AVAX) and other protocols have opened up more avenues for crypto traders to deposit funds. their.

On the other hand, the main selling point of Bitcoin Cash and Bitcoin SV remains claims of greater scalability, which has failed to attract investors as Bitcoin’s transaction fees have dropped by more than 50% this year.

Performance of the top 25 crypto assets as of December 30, 1330 UTC. Source: Messari

That has led to a decline in market dominance of both Bitcoin Cash and Bitcoin SV. While BCH’s share of the entire crypto market fell to 0.37% from 0.84% ​​at the beginning of this year, BSV’s market share also dropped to 0.10% from 0.40% in the same period.

However, Bitcoin, which dominated the market also fell from 70% to less than 40%, outperforming Bitcoin Cash and Bitcoin SV. That is mainly due to the growing acceptance by retail and institutional investors as they seek safe haven against the inflation-friendly easing monetary policies of central banks. nursing.

Abnormally developed data

Bitcoin also outperforms BCH and BSV based on developer activity.

Data fetched by CryptoMiso.com shows that Bitcoin approved 2,937 changes proposed by more than 100 contributors to its source code this year, the seventh largest number of commits recorded on GitHub. Meanwhile, Bitcoin Cash and Bitcoin SV processed 1,099 and 496 commits in the same time period.

Bitcoin Cash and Bitcoin SV committed in 2021. Source: CryptoMiso

The higher number of commits indicates that there are more developers who want to improve the open source project. Conversely, a lower number warns of a slower rate of improvement on the protocol.

In the end, Bitcoin SV turned out to be the worst performer of Bitcoin Cash in terms of price performance, as well as market dominance and developer activity. Investors also kept their distance as the Bitcoin SV network suffered three 51% attacks and its co-founder Craig Wright remains embroiled in a lawsuit, as Cointelegraph previously reported.

Now, BSV price could face more losses ahead if it breaks below the long-term support near $121.50, as shown in the chart below.

Weekly BSV/USD price chart. Source: TradingView

Conversely, a pullback from the $121.50 support can cause BSV price to test the 50-week exponential moving average (currently near $167) as the next upside target.

Likewise, the latest drop in BCH price has brought it near multi-year ascending trendline support. Therefore, a pullback from said level could lead the Bitcoin Cash token to reach around $600 as its next upside target, as shown via the Fibonacci levels below.

Weekly price chart of BCH/USD. Source: TradingView

Otherwise, a break of the long-term support risks sending BCH price on its way to near $195, a level that has historically pushed the price higher.

Source: Cointelegraph

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