Bitcoin SV, which is now the No. 5 cryptocurrency based on market cap, has taken investors on a wild roller coaster ride of late. The BSV price more than doubled from USD 174 on Jan. 13 to USD 422 on Jan. 14, only to tumble just as quickly to currently hover at USD 323, down 11% in the last 24 hours. The massive rally came on the heels of a development surrounding self-proclaimed Satoshi Nakamoto and BSV evangelist Craig Wright, who according to a filing said he was prepared to shed light on his bitcoin holdings. According to Wright in the filling, a “third party has provided the necessary information and key slice to unlock” more than USD 9 billion in bitcoin holdings. That rally lost steam, however, after doubts surrounding the veracity of those documents emerged.
While crypto traders were entertained by the BSV price movement, they also pointed to a broader trend that involves not only Craig Wright’s favorite cryptocurrency but altcoins more broadly. Bitlord, who boasts more than 105,000 followers on Twitter, pointed out that the recent rise in both BSV and BCH reflects “the markets appetite for cheaper BTC alternatives.” Bitlord went on to suggest that investors will be directing more money into smaller caps, which could be reminiscent of the 2017 market in which coins pumped by as much as 500%.Source: Twitter
Meanwhile, the recent altcoin rally has left other crypto market leaders scratching their head. Billionaire trader Mike Novogratz, who is at the helm of Galaxy Digital, tweeted;
“I’m not sure I understand the altcoin rally. Happy for those making money on it. But not sure what changed. Maybe new year, new money, new enthusiasm.”
Novogratz went on to offer dinner in New York for the best explanation, which generated more than 500 responses. Novogratz also wondered if Tron Founder Justin Sun and his investment in crypto exchange Poloniex could have anything to do with the rally.
According to Twitter bots, USD 39 million in BTC has flowed into Poloniex from an unknown address. They say “inflows of this size are rare, and the avg. daily $BTC inflow into Polo is $2M – $3M,” adding that they are monitoring the situation to see if it could be the exchange moving funds around. Most of Novogratz’s followers doubt that Justin Sun had anything to do with the crypto rally. Bitcoin’s dominance is currently hovering at 66.6% and the combined value of the crypto market is USD 237.1 billion, according to CoinMarketCap.
As for Bitcoin SV, Nicholas Merten, who is the founder of the YouTube of crypto, DataDash, advised investors to ignore the BSV price, saying in a tweet:
“Ignore the price moves of BSV. Only $35.6M of volume is from exchanges open to US traders. The other 99.4% of daily volume is made up of mainly no-name exchanges and known wash trading exchanges that still deceive this space. They can basically dictate a false price.”
Trading volume on BSV is currently hovering at USD 4.7 billion. Meanwhile, Craig Wright remains mired in a legal battle in which he is being sued for billions of dollars’ worth of BTC by the estate of the late Dave Kleiman, his former business partner.