The recent Bitcoin Cash price increase has been attributed to a trading frenzy after Kraken opened BCH deposits and traders flocked to the cryptocurrency exchange to cash-in on the free $100 for each BCH.
Kraken had a premium of around $100 prior to deposits opening and because of this traders started buying BCH on other exchanges to sell it off at Kraken and this buying frenzy led to a massive surge in Bitcoin Cash price over the course of last 48 hours.
This bullish trend led to Bitcoin Cash price increase to $370 on Bitfinex and a whopping $440 on Kraken. However, the first deposits reached the required 20 confirmations and that’s when the sell-off frenzy started taking the Bitcoin Cash price down to $300 levels. More and more traders started selling off their BCH at Kraken, but the $100 premium on the exchange then closed and this led to a stabilization of the price at $320 levels.
As of this writing Bitcoin Cash is trading at $340 levels – a much stable price – compared to what we witnessed over the last two days. What we anticipate is much stable future compared to the first few days of the Bitcoin Cash. Normal trading has seemingly resumed with volatility reducing as well to a certain extent.
Reports indicate that Bitcoin Cash network is now producing blocks in more regular intervals now and this could lead to a much stable future. While trading is certainly one of the key aspects of a cryptocurrency’s future, merchant adoption will ensure stable future for the cryptocurrency.