- Bitcoin SV, the controversial blockchain token promoted by Craig Wright, has surged by 21 percent in just two days.
- The wild price rally surfaced as Bitcoin, the leading cryptocurrency token, jumped above $9,300 after a week of rangebound action.
- Nevertheless, the extent of Bitcoin SV’s rise surprised, given the move had no solid catalysts backing it.
Bitcoin SV added about $60 million to its market capitalization in just two days of trading. As a result, the cryptocurrency’s per token rate against the US dollar surged by circa 21 percent. It also rose by about 19 percent against the top digital currency Bitcoin.
It’s not just Bitcoin SV, though. The entire top-10 brass of cryptocurrency returned little-to-major gains. Bitcoin, for instance, jumped by close to 3 percent. Its rivals, including Ethereum, XRP, Bitcoin Cash, and EOS, rallied in a 2-15 percent range.
Bitcoin SV (BSV) price correcting lower on Tuesday. Source: TradingView.com
Bitcoin SV (BSV) price correcting lower on Tuesday. Source: TradingView.com
But Bitcoin SV’s gains surprised. They appeared overtly higher than their peers even for a Bitcoin-tailing rally. Meanwhile, they came almost without solid catalysts – something that could explain why traders pumped Bitcoin SV by $60 million overnight.
Thin Liquidity
One of the significant reasons why altcoins perform exceptionally well on special days is inferior liquidity. Compared to Bitcoin, Bitcoin SV remains a thinly-traded coin despite maintaining its position in the top-ten cryptocurrencies.
That shows the involvement of lesser market participants – a few actors create an artificial demand for the asset to take advantage of day traders.
One analyst noted in back in January 2020 that Bitcoin SV has a smaller market presence following its delisting across several top exchanges last year. That left the cryptocurrency in the hands of smaller, unregulated exchanges – a hotbed for pump-and-dump crypto schemes.
“Much easier to pump shitcoin on 3rd rate exchanges with low liquidity,” the analyst wrote.
Bitcoin SV Outlook
Such risks don’t deter long-term BSV believers from holding the token. People who believe that the Bitcoin SV’s creator Craig Wright is the real Satoshi Nakamoto keeps attempting to grow their community on social media.
Calvin Ayre, an online casino billionaire with business interests in Bitcoin SV, can be seen commenting under the Twitter posts, promoting Bitcoin SV as the “original Bitcoin” all the time.
must read. This explains just one more reason why BSV will end up as the only platform that does everything…its designed to work inside the regulated world that is coming:https://t.co/LHTtp4Lihz
— Calvin Ayre (@CalvinAyre) July 7, 2020
The coin also has a dedicated website CoinGeek.com that constantly keeps updating readers about its infrastructural growth.
But then, there are observers who think Bitcoin SV does not even deserve to be in the top-ten. Tom Shaughnessy, the founder of Delphi Digital, made that clear in his Monday tweet, wherein he accused Bitcoin SV of being a “choppy block.”
“Any project worth billions that had years to deliver and didn’t is on the chopping block,” Mr. Shaughnessy said. They’re really not worth billions, given a sizeable sale would impact the books.”
Bitcoin SV was trading more than 4.17 percent lower on Tuesday.
Photo by Juan Rumimpunu on Unsplash
