It’s been a difficult week for Bitcoin and Bitcoin Cash, with both coins seeing substantial price drops.
$BTC’s value is now 8% below the high of July 13, while $BCH’s price has sunk 28% over the past month.
However, the good news for crypto investors is that several new altcoins remain bullish – with BTC20 being one of the most promising.
Crypto Whale Movements Prompt Uncertainty for $BTC Holders
At the time of writing, Bitcoin is trading around the $29,160 level, having fallen over 3% since Sunday evening.
During that time frame, Bitcoin has collapsed below the 20-day and 50-day Exponential Moving Averages (EMAs) on the daily price chart, signaling an evident change in investor sentiment.
Additionally, the Crypto Fear & Greed index has dropped to 51 – meaning it’s now in “Neutral” territory.
One of the key factors driving this selloff is a recent report from on-chain analytics firm Glassnode, which highlighted the volume of “whale” movements related to $BTC.
According to this report, 41% of total exchange inflows over the past week have been attributed to crypto whales, defined as wallets holding 1,000 $BTC or more.
This metric has sparked fear throughout the crypto market since large whale movements often foreshadow broader selling pressure.
As such, if this trend continues, there’s a growing belief that Bitcoin could be heading for further losses.
Bitcoin Cash Struggles in $BTC’s Shadow
Bitcoin Cash has not been immune to the recent crypto selloff either.
$BCH is down around 7% since the beginning of the week and is currently hovering around the $234 level.
Like Bitcoin, $BCH has fallen below the 20-day EMA yet is still trading above the 50-day EMA – offering a glimmer of hope to long-term holders.
However, as noted by CoinMarketCap, trading volume is down 19% since yesterday, reflecting fading interest among traders and investors.
Unsurprisingly, one of the main factors contributing to Bitcoin Cash’s recent weakness is that $BCH is heavily correlated with Bitcoin’s price action.
Thus, with Bitcoin falling, it’s no surprise that Bitcoin Cash is following suit.
Until Bitcoin Cash can carve out a clearer value proposition beyond being a $BTC spinoff, an issue that has plagued the coin for years, it may continue to suffer whenever the overall crypto market turns bearish.
Which Altcoins Remain Bullish While $BTC & $BCH Struggle?
While market stalwarts like Bitcoin and Bitcoin Cash struggle amidst growing investor uncertainty, several smaller altcoins remain resilient.
One such altcoin is the new BTC20 token, which has bucked the downtrend thanks to its unique design and innovative use case.
BTC20 Stakes Claim as “The Next Bitcoin” After Raising $2.5m
BTC20 ($BTC20) is a new ERC-20 token that pays homage to the early days of Bitcoin by setting its presale price at $1 and limiting the total supply to 21 million tokens.
The token uses a Proof-of-Stake (PoS) consensus mechanism that rewards users for staking their tokens, unlike Bitcoin’s energy-intensive Proof-of-Work (PoW) mining setup.
Interestingly, BTC20’s tokenomics mirror Bitcoin’s original design, with a schedule for releasing staking rewards over approximately 120 years.
Per BTC20’s whitepaper, any remaining supply will be locked into a staking contract after the initial presale of up to 6.05 million $BTC20.
With every new block on the original Bitcoin blockchain, a predetermined number of tokens will be distributed to stakers relative to their stake.
This appealing setup incentivizes long-term holding since users can earn a passive income stream simply by investing in $BTC20.
The stake-to-earn mechanism, combined with BTC20’s nod to Bitcoin’s history, has created a considerable buzz around the project – with leading YouTuber Michael Wrubel even referring to it as “the next Bitcoin.”
With momentum continuing to build, many crypto analysts are closely monitoring $BTC20 and its innovative attempt to merge Bitcoin’s legacy with new and exciting use cases.
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