During the night between Tuesday and Wednesday, Bitcoin plummeted with several thousand dollars and Bitcoin cash found new ground to move on. Is it time to switch our cryptocurrency investments yet? Probably not.
Everyone was expecting to see Bitcoin set new records before Christmas, but that does not seem as likely anymore. Between Tuesday and Wednesday Bitcoin dropped from $19,000 to $16,500 in less than five hours, creating chaos and worry on the market.
During the same time period, Bitcoin’s younger brother Bitcoin cash gained momentum and surged from below $2,500 to way above $3,700 in just a few hours, reclaiming its role as Bitcoin’s largest rival.
What Caused the Bitcoin Price Drop?
The development is most likely based on a statement from Bitcoin.com’s founder Emil Oldenburg. In an interview with the tech site Breakit, Oldenburg said that he is selling all his Bitcoins to invest in Bitcoin cash. He also claims that Bitcoin has become “completely unusable,” and that the high transaction fees have doomed any further development for Bitcoin.
However, we don’t think this is enough to frighten the market. Bitcoin has dropped significant amounts in value several times before and always recovers to new record levels. In fact, in our opinion, this could be a good opportunity to invest.