With the cryptocurrency market in another downturn, most of the cryptocurrencies are falling. One of the most hit cryptocurrencies is Bitcoin cash. Currently, it is trading below $ 800. Many of the investors are stuck in Bitcoin cash by investing at higher levels. This is the reason why such a drastic fall in Bitcoin Cash is actually detrimental to their portfolio.
Why is Bitcoin Cash falling so significantly?
The main reason why Bitcoin Cash is falling so significantly is that it has not been able to gain any traction. Apart from Coinbase, not a lot of exchanges are included in Bitcoin cash on their trading platform. This is one of the main reasons why it is not able to gain traction. As it is not able to gain traction, the trading volumes are falling consistently as well. As a result, Bitcoin Cash is going down further.
Moreover, the other cryptocurrencies are also falling consistently. Bitcoin Cash cannot buck the trend of the other cryptocurrencies falling consistently. That is why, whenever there is a fall in the other cryptocurrencies, Bitcoin falls as well. This is one of the main reasons why the downturn is continuing. Most of the other cryptocurrencies are also in a downturn which ensures that Bitcoin Cash will continue to fall further unless and until that downturn does not end.
Moreover, the regulatory framework in different countries is not pretty clear. The regulatory framework has a drastic impact on the price of cryptocurrencies. This is the reason why Bitcoin Cash is falling consistently as well.
Also, Bitcoin Cash hit is related to the price of Bitcoin. Bitcoin has fallen from $ 20,000 all the way to $ 7500. This is another reason why the price of Bitcoin Cash is also falling consistently. Unless and until the price of Bitcoin does not increase significantly, it is very difficult for the price of Bitcoin Cash to increase. This is the reason why Bitcoin Cash is also falling significantly.
Even when you look at the investment solutions, you will realize that very few of them actually invest in Bitcoin cash. This means that the institutional money also is absent in Bitcoin cash. In the last few hours, it has fallen by around 12%. This is a drastic fall as compared to some of the other cryptocurrencies which have just fallen by 4 to 5%.
It remains to be seen whether Bitcoin Cash is able to recover anytime soon or whether it continues to fall.
David is passionate about learning cryptography, tech and the Internet. He has years of experience working at international investment projects. Growing interested in Blockchain and cryptocurrencies in late 2015, he joined Smartereum as an editor.