Bitcoin price increases substantially today from a low of $2400 to a high of $2800 in a matter of hours and a totally opposite pattern was exhibited by Bitcoin Cash price that saw a decline from a high of $474 to a low of $237.
Bitcoin price increased, but the corresponding trading volumes haven’t surged and according to reports, the trading volumes stood at $1.3 billion. Trading volumes of Bitcoin Cash (BCC) have increased on the other hand from $10 million to $15 million indicating that the new cryptocurrency has support at lower prices.
An increase in Bitcoin price but decline in Bitcoin Cash could hint at a possible correlation. The same inverse relation in pricing was seen a few days ago when Bitcoin price stumbled but BCC price increased. However, establishing such sort of a correlation is too early considering BCC doesn’t even exist yet.
Despite the fact that it is yet to be created, Bitcoin cash has seen many takers already including the likes of Kraken, Bithumb, ViaBTC, OKex, and others who have already said they will list BCC for trading.
Bitcoin price surge
So what could have caused the increase in Bitcoin price today? One of the possible reasons is thought to be reduction in the supply of Bitcoin due to closure of BTC-e. With hundreds of thousands of Bitcoin going out of the circulation because of BTC-e closure, the price increase is likely to continue over the few days or at least stay in the $2700-$2800 range until August 1.
As far as BTC-e is concerned, it has assets in tune of 560,000 Bitcoin and there is no information on who controls it as of now. Further, some 66,000 bitcoins, currently worth around $160 million, are on the move. The reason remains unknown.