Over the past seven days, Bitcoin Satoshi Vision (BSV) has been on a jaw-dropping rally, outpacing BTC, which itself saw a stellar week gaining well over 10%; in fact, the altcoin was one point up around 250% on the week, outpacing effectively all other multi-billion-dollar assets on any market.
This rally has allowed BSV to become the fourth-largest cryptocurrency by market capitalization, passing other digital assets such as Tether, Litecoin, and EOS.
At its peak on Tuesday, the cryptocurrency was trading at $450, surpassing the price of another fork of Bitcoin, BCH.
But, over the past few hours, BSV has plunged. In fact, prominent industry podcaster Peter McCormack noted that the cryptocurrency has fallen by 37% from the local high that was aforementioned, with the asset now trading for $290.
Now 37% https://t.co/JCuuv6FBMy pic.twitter.com/zKJuIRVgs5
— Peter McCormack 🇸🇻 (@PeterMcCormack) January 15, 2020
A cryptocurrency analyst focusing on mining recently revealed why this dramatic pullback has taken place.
Why Bitcoin SV Plunged 37%
HashR8 founder “MeanHash,” a cryptocurrency miner and analyst, noted that per data from ByteTree, it is clear that “miners [of BSV] are dumping on everyone who bought that pump.”
The data from ByteTree: the number of first spent coins being sent for the first time after being minted by miners has surged 110.2% in the past day.
Miners still dumping on everyone who bought that pump. pic.twitter.com/aDB7x8MOkZ
— MeanHash ₿ ✪ (@MeanHash) January 16, 2020
MeanHash further backed up his assertion with another chart, showing that sales of BSV by miners correlated with strong drops and wicks lower in the chart of the altcoin.
But that may not be the only reason the Bitcoin fork’s bullish price action has tapered off strongly over the past day.
For those unaware, much of BSV’s rally over the past week was catalyzed by news of a court case between Craig S. Wright, the main proponent of the Bitcoin variant and someone who claims to be Satoshi Nakamoto, and his former business partner, now deceased. Indeed, when a number of documents this week revealed that Wright may soon have access to a cryptocurrency stash he claims to have hundreds of thousands of BTC, BSV spiked higher on the seeming anticipation that Wright would support the BSV chain with all that capital rather than BTC and other cryptocurrencies.
But, according to analysis of the documents by Decrypt Editor Tim Copeland, Wright is still waiting on access to his stash, and instead only received access to a document that has a list of Bitcoin addresses that purportedly contain his fortune.
This means that Wright still does not have access to the BTC, likely throwing cold water on the sentiment of BSV investors.
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