UPDATE: During the weekend Nov 11-12, BCH price rose even higher surpassing the $2,000 mark and setting a new all-time-high at 2,400 dollars. It then retracted below $1,500.
Now that the Bitcoin hard fork drama has ended and the price seems poised to return to October levels circa 6,000 dollars, Bitcoin Cash (BCH) gets the market's attention as its price has risen by more than 50 percent in less than 24 hours. At the time of writing, BCH at Bitfinex is traded at 1,338 dollars. It was below the 1,000 mark yesterday.
As the chart below shows, Bitcoin Cash price has been on the rise for quite a time now. It is apparent that many cryptocurrency investors saw the new digital currency as the alternative for Bitcoin, which was headed full-steam for a chain split on November 16.
Here's a chart showing BCH's slow but steady rise since the end of October. In the same period, Bitcoin was also on the rise, reaching 7,500 dollars, but its community was split in two as the scaling debate reached another deadlock.
On November 8, the controversial Segwit2X hard fork was called off, as JustCryptoNews.com has promptly reported, but the Bitcoin price did not continue its initial rally past the $7,500 mark - instead, it went south losing more than $1,000 in just a few days. BTC price is already below the 6,400 mark (where it was on November 1st) and it is hard to imagine why it should not return to October levels, that is under 6,000 dollars. See the Bitcoin price chart:
There are a few reasons for this. First, many were buying BTC anticipating short-time earnings in the event of a chain split due to Segwit2X. But, now the hard fork airdrop possibility is zero. Thus these people sell their bitcoins high to capitalize on the price.
Others were of course just speculating on the seemingly unstoppable price drive to 7,500 dollars and beyond. But to their disappointment, there is no more "important" news to pump upon.
And finally, there are those who wonder why to keep investing on "1MB" Bitcoin which has so much difficulty reaching a community consensus about scaling, when there is already the "8MB" Bitcoin Cash alternative which supports much more Transactions Per Second than the original Bitcoin.
Furthermore, Bitcoin Cash's extraordinary growth these days might have something to do with the network preparing for its new hard fork -on November 13- which will bring an updated Difficulty Adjustment Algorithm (DAA).
So, now you get to see the reasons why BCH has this crazy +50% increase in just a few hours.