Little forkers: BCH and BSV get crushed by Bitcoin price in 2021

According to market data, Bitcoin (BTC), is expected to outperform its forked versions Bitcoin Cash and Bitcoin SV in terms of price performance in 2021.

BTC’s year to date (YTD) returns were close to 60% as its price fluctuated near $47,000. BCH rose slightly more than 26% to $435.50 while BSV plunged 25% to $122.30 during the same period.

The biggest takeaway was the Bitcoin Cash and Bitcoin SV performance against Bitcoin. The BCH/BTC rate fell by more than 22.50% YTD, to 0.00916. The BSV/BTC rate dropped by almost 55% YTD, to 0.00258 BTC. This indicates capital rotations from Bitcoin forks.

BCH/BTC and BSV/BTC daily candle prices chart. Source: TradingView

Market dominance

Forked Bitcoin tokens, once ranked among the top-ten cryptos in terms of market capitalization, have lost their position to the emerging layer one blockchain projects.

Notably, the introduction of Terra (LUNA), Terra (ADA), Terra(SOL), Terra (ADA), Terra and other protocols provided more options for crypto traders to store their money.

However, Bitcoin Cash and Bitcoin SV’s main selling points were claims of greater scalability. This was not a popular point with investors, as Bitcoin’s transaction costs fell by more than 50% this year.

Performance of the top 25 crypto assets as at Dec. 30, 1330 UTC Source: Messari

This resulted in a decrease in market dominance for Bitcoin Cash and Bitcoin SV. The BCH’s share of the crypto market fell to 0.37%, from 0.84% at its beginning. However, the BSV’s market share also dropped to 0.10% from the 0.40% during the same time period.

Bitcoin Cash and BitcoinSV performed better than Bitcoin Cash, which also saw its market dominance drop from 70% to below 40%. This is due to its growing popularity among institutional and retail investors who were looking for safe-havens from the central banks’ loose monetary policies that are inflation-friendly.

The #bitcoin holders feel good!
December 19, 2021 — Lark Davis (@TheCryptoLark).
bysmal development data

Based on developer activity, Bitcoin outperformed BCH and BSV.

CryptoMiso.com data showed that Bitcoin approved 2,937 modifications suggested by more than 100 contributors to its source codes this year. This is the seventh-largest number recorded on GitHub. Comparatively, Bitcoin Cash processed 1,099 commits and Bitcoin SV processed 496 in the same time period.

Bitcoin Cash and Bitcoin SV will make their first payments in 2021. Source: CryptoMiso

Higher commit counts indicate that developers are more interested in improving the open-source project under their control. A lower number indicates a slower rate for improvements to the protocol.

Bitcoin SV ended up being the worst performer of Bitcoin Cash in terms price-performance, market dominance, and developer activity. Cointelegraph reported earlier that investors remained aloof as Bitcoin SV suffered three 51% attacks, and its cofounder Craig Wright was still embroiled in a legal battle.

BSV price could suffer further losses if it falls below the long-standing support level of $121.50. See chart below.

Weekly price chart for BSV/USD Source: TradingView

A pullback from the $121.50-support could see the BSV price reach its 50-week exponential moving mean (currently at $167) as an upside target.

Related: Top Crypto Winners and Losers for 2021

The latest BCH price decline has also brought it close to its multi-year ascending support trendline. According to Fibonacci levels, Bitcoin Cash token could see $600 as its next upside target if it pulls back from this level.

BCH/USD weekly chart. Source: TradingView

If the BCH price breaks below the long-term support level, there are risks that it will fall to $195. This level has a history of sending the prices higher.

com. You should do your research before making any investment or trading decision.

https://cointelegraph.com/news/little-forkers-bch-and-bsv-get-crushed-by-bitcoin-price-in-2021