Bitcoin Cash, Bitcoin SV See Massive Shorts in its Prices After a Phenomenal Rise the Last Three Weeks
Poloniex recently published a report on trader’s short trend on the exchange for three crypto assets namely Bitcoin Cash [BCH], Bitcoin SV [BSV], and Ethereum Classic [ETC]. The blog post released by Poloniex states that the recent surge in prices was ignited by the feud between Craig Wright and the rest of the crypto community. The feud started with Craig Wright’s attorney sending a threatining letter to one of the Bitcoin proponents and traders who called Wright a serial liar and scammer.
The bully behavior by the Wright’s side was not taken kindly by others and Binance announced that it will be delisting BSV token from all its services which were followed by many other services providers. The blog post claim that the situation gave an opportunity to uses to short BSV. However, the effect of shorting seems to have rubbed onto the BSV competition Bitcoin cash network as well but the cause behind its short is yet to be determined.
The blog added,
“it's unclear what’s driving people to short Bitcoin Cash. See the results below, all with BTC as a base pair, for the percentage of long vs. short positions as of April 24, 2019.”
The blog post also included a chart which shows a comparison between short and long of Bitcoin Satoshi Vision (BSV), Bitcoin Cash (BCH) and Ethereum Classic (ETC). The chart suggests that while Ethereum is largely long, but BCH and BSV are p[redominantly short. Another interesting takeaway from the chart suggests that BCH which saw massive growth in the recent price rally almost doubling up its prices is tremendously short even in comparison of BSV network.
A Twitter user also commented over the chart comparison and said,
“interesting that folks are shorting BCH ABC, by all means, short BCHSV to ground… Probably we can see some trading opportunities in BCH ABC and BCHSV For some reason, I keep getting sign out every time I log in to Poloniex, it's annoying, probably you can look into it”
Probable Causes Behind Shorting Bitcoin Cash
Although Satoshi Nakamoto created Bitcoin to work towards the common goal of achieving a privacy and monopoly resistant form of independent finances, however as of today there are thousands of crypto tokens and hundreds of different groups rallying behind a different token. The crypto space currently has a token for every use, be it for tipping, or gaming or infrastructure you name it, and probably there is a token for it.
The top 10 crypto tokens have large community rallying behind it dissing others and celebrating the loss of others. While the delisting saga began, Bitcoin proponent found a way to diss BCH along with BSV.
According to Bitcoin proponents, any forked coin of Bitcoin is a not really a crypto token as they have not brainstormed or created something from scratch. Thus, these proponents left no chance to diss BCH and call it no better than BSV, mind you BCH has nothing to do with the current BSV drama, but since both the tokens were involved in an ugly tussle at the time of hard-fork, a majority of the community does not seem to have much likening of either of them.