Altcoin Markets Hurting As People Flood Into Bitcoin Before August 1st
Almost completely across the board we are seeing people flooding into bitcoin today as they hope to get “free coins” on the first when Bitcoin Cash is looking to fork. We even saw bitcoin move back above the 50 percentage of total market cap today and most likely it will get higher before the fork. With the current price that bitcoin cash is trading at on exchanges like Viabtc, it just makes sense to cash out, hold and then on the first move back into the currency you want, but I don’t think things are going to be that simple.
What I believe is actually going to happen, especially for some smaller less liquid cryptocurrencies is that smart money is going to be buying at a cheaper price and after the first there is going to be a squeeze. With some of the smaller currencies we are seeing 20%-30% drops in just a single day because people are literally just selling everything onto the order books, but getting back in isn’t going to be that simple. There aren’t the same amount of asks on the sell side, so people are going to have to push the price back up in order to get their positions back.
If you are thinking about cashing out now and then going back to a different currency, it might not make sense because you ultimately might not make anything. If the price gets pushed up and you want your same position back, after you sell the bitcoin cash, you probably will be at a wash. What I would say you want to do now is actually wait until we get closer to the first, or buy more of the smaller currencies right now. I don’t usually trade, but I personally bought a decent amount of smaller currencies that dropped today because ill end up making a larger profit on the price rise after the first than actually getting bitcoin cash.
Also in regards to the price of bitcoin cash, expect it to tank severely on the first and in the days after. If you want to take a gamble I would suggest holding it to November, when the hard fork to 2MB is supposed to take place. I expect core will push it back or just not do it and that will push people who are currently with bitcoin, to bitcoin cash. Roger Ver has already said that is what he will do if core doesn’t deliver, so I think the price will most likely rise around then. Try not to make the same mistake that happened when Ethereum forked.
Many people sold off all they could, but there was still some support on the other chain, which I believe to be the case here as well, so in time the price rose. People who sold immediately expected the chain to die and their coins to be worth nothing, but ultimately they ended up regretting their immediate sale. As long as there is some demand the price will probably go up a bit and if you want to sell, that would most likely be a better option. So if you are looking to exit your coins into bitcoin for bitcoin cash, you might want to think of another option. If everyone is doing the same strategy, it usually will only work out for a few select people who get there first.
Thanks to @Elyaque for the badges
Yes, I also think that bitcoin cash will tank. It might also as you mention be a good opportunity to get cheaper alt coins you like. Just don't get emotional:)
Well said. I did that today as well for some smaller stuff like Factom. Hoping people jump out of Bitcoin and back into alts on/after Aug 1st.
Couldn't of said it better it myself. Not to mention all the people who don't know what's going on and are panic selling. The amount of friends that have said "oh yeah I am buying for the long term" and then go and sell sell sell when the market's a bit stroppy is just ridiculous.
Weak hands lose money in the long run. Patience and trading without emotions is key. Those who dont do that, dont stay very long.
Great article about the incoming Bitcoin split @calaber24p and the effect it is having on altcoin markets.
With many folks helping to cover of this topic, it strengthens the community the greatest amount possible.
Here's a quote from the author @calaber24p that really stands out:
I have already created a helpful guide that anyone can use to ensure they get all the free coins coming to them in the fork right here on Steemit:
[How to] A Helpful Guide & Complete Compendium to the whole NEXT WEEK of BITCOIN: From Price to Fork(s) and MORE
My page regularly posts about Steemit, Bitcoin and other crypto related material, check out my well written and easy to read content; follow for the FASTEST active news you can run with!
Good stuff. Interesting perspective.
"There aren’t the same amount of asks on the sell side, so people are going to have to push the price back up in order to get their positions back."
It's all a game. HODL, PEOPLE!
I think people are buying bitcoin so they can get more bitcoin cash on and after august 1st when the bitcoin cash coins are distributed. after that is when we can if this rally is real.
yeah i think there wil be a pullback when people go back to the coins they were speculating with
I dont get it, this BCC should crash in price after the fork, even original BTC chain may suffer, so whats the point on getting 2 coins that will loose value?... Also trading BCC will be hard as many exchange wont support it...
People are hoping that the market cap ends up being more than it was before the split, like what happened with the Ethereum fork. Also many people are speculating in altcoins and just playing around, but hold btc long term so they want to have coins on both chains and just see how things turn out.
Yep, thats pretty much what happening... I dont have much BTC, i only have a little bunch of steem... Would you recommend to buy some BTC?, or even using some USD to buy BTC now?
yes all coin market hurting before 1st august maybe after some days of 1st august all other coins come back their top when people convert btc in othet coins
People think that they will get 2 coins for the price of one if it forks: BTC and BCC.
The truth is, the sum of these 2 coins will be less than the value of BTC today if we fork.
And BCC soon will be yet another altcoin.
"smart" move from the Bitmain team to create multim billion valuation out or thin air. Can't wait to read that BCC is somehow pre-mined (1st miner advantage)...
A big scam, hurting everybody.
potentially, it depends on whether or not bitcoin cash brings back people who went to other alternatives because they were fed up with bitcoin. Also sometimes people are willing to dump money into coins at a loss because of ideological reasons. After the ETC fork, the combined market caps was actually larger. From a strictly economic perspective it should be equal after the fork, but there are many other factors.
I will probably be buying some smaller coins too and definitely want to get on some Steem. It is perfect opportunity to get some more SP if you are a minnow as me at the moment since the price is dropping quite low.