Bitcoin Cash Is up 84% in Two Weeks in What Some Claim to Be a Dead Cat Bounce

Francisco Memoria

Bitcoin Cash (BCH), a cryptocurrency created through a hard fork of the Bitcoin (BTC) network in August of last year, has been rising at an impressive pace in the last few days, and is currently up over 85% in the last two weeks.

According to CryptoCompare data, BCH went from a $74 low to nearly $230 in only a few days, and has since seen its price drop back down to $196, where it’s trading at press time. The cryptocurrency has notably dropped about 98% from its all-time high of $4,000 before this recent rally.

Bitcoin cash's price in the last month

What’s behind BCH’s recent recovery is currently unclear. The cryptocurrency fell along with the rest of the market but is currently outperforming the rest of the market. Earlier this year BCH went through a hard fork that led to the creation of Bitcoin Cash Satoshi’s Vision (BSV), and a ‘hash war’ that some analysts believe has taken its toll on the cryptocurrency ecosystem.

The rise also comes at a time in which the equities market has been seeing repeated sell-offs. Since the beginning of the month the S&P 500 Index has lost over 11% of its value over rising interest rates and the threat of slower global growth. Some crypto enthusiasts believe cryptocurrencies can be used to hedge against wider market failures, and as such the crypto’s value may be growing.

Still, some claim that BCH’s rise appears to be a dead cat bounce, meaning it’s merely a temporary recovery that’s set to be followed by the downtrend’s continuation. In a Bloomberg op-ed article Lionel Laurent argued the cryptocurrency – along with BTC - may not recover from this year’s bear market.

The slight bounce after a catastrophic year is probably to be expected, but may not be sustainable. One still can’t rule out that these particular crypto-cats are dead.

Peter Brandt, an ‘old school’ trader who called bitcoin’s 84% decline this year, warned the cryptocurrency’s recent rally to little over $4,000 could be a dead cat bounce, in which case its next target would be the $1,200 mark.

Some have also claimed Bitmain, which is said to own one million BCH, is artificially pumping the cryptocurrency’s price to look more appealing to investors. This, after sources recently claimed the Hong Kong Stock Exchange was unlikely to approve its initial public offering (IPO).

Early Bitcoiner Donates 50 BTC to Grin, Sparking Satoshi Nakamoto Rumors

The Grin General Fund has recently received an anonymous 50 BTC donations from an early bitcoin adopter, a move that sparked rumors it could’ve been Satoshi Nakamoto.

Grin is a privacy-focused cryptocurrency that aims to empower anyone to transact and save money without fearing external control or oppression. One of its developers, Daniel Lehnberg, recently revealed the project received a 50 BTC donation from an address that stored the coins since they were mined.

A look at the data on the blockchain shows the address mined the 50 BTC back in December of 2010, when block rewards were still of 50 BTC and when the cryptocurrency was worth very little.  The only transactions the address have are the one receiving the coinbase rewards in December 2010, and the donation to Grin this month.

Analyzing the data Litecoin creator Charlie Lee said on Telegram the donation came from Bitcoin’s creator Satoshi Nakamoto. Lee later on clarified his comment was a joke, but rumors started flying, setting the crypto community abuzz.

Lehnberg revealed in his post that he managed to interact briefly with the donor, who chose to remain anonymous. The donor said he wouldn’t judge how the funds, currently worth around $429,240, would be spent and assured him the project was going great and that it “feels like 2009/2010 again.”

The donor reportedly added:

It’s wonderful that we have GRIN now, our motives are not economical! It’s about the technology and the protocol. Please put it to good use for the development of GRIN … We saw your work and your ethics towards the project and your interest free work. This is what we are honouring right now with these donations so that you can work freely on GRIN. Without economic dependencies.

The donor added that hopefully they judged right and “time will tell.” It’s worth pointing out that blockchain data also shows that at the time of the transaction, December of 2010, the number of unique addresses on the Bitcoin network grew from 500 to 600.

One unique address if often associated with one user, although anyone can, of course, create multiple unique addresses. As the donor mentioned it “feels like 2009/2010” wit’s possible they got into Bitcoin the year it was created, 2009.

If so, blockchain data shows the number of unique addresses grew to 100 that year, which could still mean there are 100 potential candidates, one of them being Satoshi Nakamoto himself.

Featured image by André François McKenzie on Unsplash.