Bitcoin Cash declined sharply today, falling to its lowest value since April.
The price of Bitcoin Cash, which is a hard fork of the original Bitcoin, plunged to as little as $978.27 today, according to CoinMarketCap.
At this price, it had fallen more than 17% in 24 hours, additional CoinMarketCap figures show.
Further, it was down more than 25% since surpassing $1,300 on Sunday.
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
As for what fueled these sharp declines, analysts have provided mixed views.
Bitcoin Cash’s Ongoing Struggle
Iqbal Gandham, UK Managing Director at eToro, voiced his concerns about Bitcoin Cash, emphasizing the digital currency’s continued struggle to effectively be the “default” version of Bitcoin.
“Though it recently upgraded its blockchain protocol, it seems that Bitcoin Cash has yet to reassure the crypto community that it can provide a more stable framework for transactions and that it really is ‘Bitcoin,'” said Gandham.
“This lack of clarity, has repeatedly called into question the authenticity of Bitcoin Cash, and until that is resolved the direction of price movement will always carry an air of uncertainty,” he stated.
‘A Dangerous Game’
Marshall Swatt, founder & president of Swatt Exchange, offered a similar point of view.
“I think that Roger Ver is playing a dangerous game trying to manipulate people to back Bitcoin Cash rather than Bitcoin,” he stated.
“I don’t have a problem with a Bitcoin Cash per se and I think it has a valid use in the market, but it isn’t helping things to fight a brand battle between BTC and BCH. The antagonism doesn’t play to BCH’s long-term adoption.”
Broader Market Movements
Some analysts focused more on the broader digital currency market, emphasizing that it has been encountering some headwinds lately.
The total value of this market fell to as little as $324.7 billion today, down 12.7% over the last 24 hours and 17% since roughly the same time that Bitcoin Cash reached an intraday high on Sunday.
David Johnson, CEO of tasking platform Latium, weighed in on these trends, emphasizing that Bitcoin Cash was certainly not the only digital currency to lose value in the last few days.
“I am less inclined to blame this move on any kind of certainty that Bitcoin Cash is losing its following due to network issues,” he stated.
“I am more inclined to say there are normal market correlations between Bitcoin and all other coins.”
The broader market has been experiencing a “small pull back,” which has helped push Bitcoin Cash lower, said Charles Hayter, co-founder and CEO of digital currency data platform CryptoCompare.
Disclosure: I own some Bitcoin, Bitcoin Cash and Ether.