Arcane Research analysts published a report in which they shared their thoughts on the reasons for the recentBitcoin SV rally, which grew by almost 200% in 7 days.
</p>One of the reasons experts call FUD, caused by claims by "self-proclaimed Satoshi" Craig Wright about gaining access to 1.1 million bitcoins.
“This rumor raised the prices of all forks of Bitcoin, especially BSV, where Wright is the central figure.”- experts shared their thoughts.
The company emphasized that Bitcoin SV is illiquid due to its absence on most popular exchanges. Consequently, the asset is easy to manipulate.
“In addition to Huobi and OKEx, Bitfinex remains the only major exchange supporting pairs with Bitcoin SV”
Another, according to analysts, a significant factor is fake trading volumes on most trading floors presented on the popular analytical service CoinMarketCap (CMC).
“On most exchanges from the top of the ratingCMC, it would seem, large volumes, but completely insignificant liquidity. This may indicate that most of the volumes are fake, and low liquidity simplifies price manipulations. ”, - the report says.
Comparison of trading volumes and liquidity with BTC and BSV as of 01/15/2020
In general, analysts note a serious increase in coinsmedium and low capitalization. For example, in just a week, DASH grew by more than 100%, Augur - by 84%. At the same time, the Bitcoin dominance index decreased from 68% to 65%.
Against the background of a significant revival of the market, the cryptocurrency “index of fear and greed” reached the values of July and October of last year:
Bitcoin trading volumes reached November; On January 14, Bitwise’s listed exchanges reached $ 1.7 billion in turnover.
Along with the volumes of November values, a 30-day BTC volatility indicator reached.
The activity of large players on the CME futures exchange also increased significantly:
The March CME derivatives quotes are still slightly higher than the spot price. This indicates the confidence of the whales of the market in the growth of the first cryptocurrency.
Among other things, increased on-chain activity in the Bitcoin network. This is noticeable in the amount of transferred value, the number of transactions, as well as the growth of miner commissions.
Earlier, Arcane Research analysts expressed the opinion that the real index of bitcoin dominance may exceed 90%.
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