After an incredible all-time high, the Bitcoin price is decreasing a bit. The world’s first cryptocurrency falls below the $40,000 mark today, while Bitcoin Cash and other altcoins continue to grow significantly.
Bitcoin Cash: How Has Its Price Changed?
If you look at total capitalization, Bitcoin Cash has been one of the most valuable coins for quite some time. However, the price of the cryptocurrency remained relatively constant at around $200 over the past year. In February, the price was even able to increase to around $490. However, the well-known Coronavirus crash led to a fall below the $200 mark.
At the end of December, Bitcoin Cash was already trading at around $350, and the rise continued rapidly in early 2021. Bitcoin Cash is currently worth around $490. Accordingly, the currency was also able to gain in value compared to Bitcoin.
Another beneficiary of the current hype is Dash. The price has increased by over 40% in the last 24 hours. Also, Monero is among our today’s winners. The privacy token increased by almost 12% in a few days.
Why Has the Bitcoin Price Dropped Slightly?
A concrete reason for the recent price loss cannot be clearly identified. Rather, different factors come into play at this point, which have led to a Bitcoin current price of less than $40,000. One of the reasons is probably that some investors are inclined to take profits in the meantime. Given the 118% growth in the past few days, some investors are sure to have sold some of their coins.
Furthermore, the mining difficulty of Bitcoin increased by around 11% on January 9th. This represents the greatest rate of increase in the last four months. The mining difficulty is currently more than 20.6 trillion — especially due to the higher number of miners and the rapidly increasing Bitcoin price.
BTC mining difficulty is a relative measure of the amount of resources needed to mine Bitcoin. It increases or decreases depending on the amount of computing power consumed by the network — also known as a hashrate. Given the current hype and increased demand for mining equipment, the hashrate is expected to continue to rise.
The Growth Potential of Bitcoin Cash & Other Altcoins
In view of the fact that the major cryptocurrencies — Bitcoin and Ethereum — have already significantly increased in price, other altcoins such as Bitcoin Cash may enjoy a growth potential as well.
Even investors who haven’t dealt with cryptocurrencies very intensively yet can register on various platforms within a few minutes. Here they can easily purchase altcoins. Due to the fact that Bitcoin’s price has already increased significantly, it seems reasonable to assume that investors are looking for alternative investments. In this way, they want to benefit from the current hype around cryptocurrencies.
What do you think about the BTC price today? Will it continue to grow in price? Feel free to share your thoughts in the comments!