Bitcoin Price Drops Down After Bitcoin Cash Launching on Coinbase
Yesterday Coinbase announced about allowing trade of Bitcoin Cash – a rival to the more common Bitcoin, technically called a “fork” — on its exchange. This announcement caused price changes in both Bitcoin and Bitcoin Cash prices, leading to speculation on the platform.
Initially Bitcoin Cash was a fork of Bitcoin. Coinbase had been monitoring the Bitcoin Cash network over the last few months before allowing fully support including the ability to buy, sell, send and receive. Early Tuesday, the price of BCH was hovering below the $2,200 mark and did not stray far from there through the day. Now the market shows a peak of just over $3,400 shortly before midnight. The price noted 40 % rise in less than 24 hours, trading at $3,100 level.
The price of Bitcoin, on the other side stopped at $19,000 early Tuesday, and crashed to $15,000 after the announcement. After that it returned back to $17,000, but then showed sudden fall to 20 %. Coinbase did not notify its users in advance, left the trading exchange open to accusations of insider trading.