Over the past seven days, apart from Bitcoin and Ethereum, Bitcoin Satoshi Vision (BSV) is the among the most talked-about cryptocurrency asset. Why not? This week, BSV gained 200% rally in just a matter of three days, which represents a high of $440.
On the other hand, the crypto asset collapsed 18% overnight, while Bitcoin (BTC), Ethereum (ETH), and other major cryptos surged to 4%. So, everyone in the crypto space is seeking reasons why this sharp drop happened.
Good thing, a number of crypto analysts found two possible reasons why the price of BSV plunged in the previous 24 hours.
Craig S. Wright Has No Current Access to BTC Stash
On January 18, Andres Rivero of Rivero Mestre law firm has stated that the file that Craig S. Wright has no included private keys.
To those who are not familiar with Craig S. Wright, he is the entrepreneur claiming to be Satoshi Nakamoto and the primary proponent of Bitcoin SV. He was reported to announce that he will dump Bitcoin and then promote their chain’s version. He claims that Bitcoin SV is the real BTC.
Furthermore, Bitcoin SV started to drop from the highs and hit the $262 level in the January 15 local peak. This suggests that the plunge is already happening even before Wright’s lawyer confirmed the news to the public.
The fortune of Bitcoin SV is correlated to Wright’s inability to access the private keys. As for Bitcoin’s performance, the crypto asset continues to maintain its higher levels in the past weeks.
Now, Bitcoin SV lost its position being the fourth largest crypto asset by market capitalization, while Bitcoin Cash over US Dollars gained 7%.
Questionable Crypto Market Activity
After hitting $440, BSV crashed as quickly it rallied. So now, the cryptocurrency is trading at $259, which is 40% lower than the $440 local peak.
Another reason behind this overnight drop is the questionable activity in the crypto market.
According to Nicolas Merten, who happens to be a popular crypto analyst, the recent surge in the BSV’s price can be correlated to the questionable crypto market activity. Besides, he also argued that the bullishness would not last long.
On his January 14th social media feed, he has stated that everyone should ignore the $BSV’s price move. That is because only the $35.6M is from exchanged dedicated to traders in the US. Then, the remaining 99.4% daily volumes is mainly compromised by no-name exchanges and even considered to be wash trading exchanges that continuously deceive the crypto market. So, it’s no surprise why these exchanges could dictate any false price.
Based on other crypto analysts’ sentiments, the recent price of the Bitcoin SV tends to be according to emotion and not to rational thought.
After that plunge of BSV, many traders tend to be curious about what will happen in the next few hours or whether or not a climb might happen.