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Bitcoin forks are gaining popularity


On the last day of April 2021, Bitcoin made another leap and rose immediately by 7 percent. Many immediately rushed to predict the resumption of the period of price growth, at least short-term. This landmark session of the BTC was the reason for the growth of Bitcoin forks, in particular BSV and BCH. These cryptocurrencies began to lead in trading on April 30 and added in value by 15 and 20 percent. During April, when Bitcoin was being corrected, these digital assets dropped quite a lot in price - this was how the BTC drawdown negatively affected them. In total, cryptocurrencies have lost about 50 percent of their capitalization.

The nearest peak in the growth of forks should be expected when the maximum indicators of the value of Bitcoin are updated. According to analytical studies, such a turn is likely quite soon, and this may be due to a change in trends in the stock market.

The movement of large assets has changed, and today it can be noted that holders of cryptocurrencies have withdrawn about 58 billion of capital. Such a large outflow of funds was last observed only a year ago, when markets fell in March 2020 as a result of the pandemic and the introduction of widespread quarantine restrictions.

To date, the funds withdrawn by investors have not gone to purchase debt bonds, but have been used to buy fiat - in particular, the US dollar, and its cryptocurrency counterpart Tether. As for the latter, on the last day of April, there was a real boom at Tether - about 1 billion coins were issued, similar trends were observed in other stablecoin companies. The sharp increase in emissions did not go unnoticed.

But experts in the analytical sphere of activity believe that such a surge in activity in the form of capital outflow and withdrawal of funds from circulation may be due to the fact that the end of the financial year falls on these dates - the reporting period begins. Moreover, the pandemic is gradually slowing down, and the economy, on the contrary, is improving, which eliminates the need to store capital in cryptocurrencies.

So far, Bitcoin has fallen in comparison with its all-time highs, which triggered a shift in attention from “digital gold” to its forks, which have lagged behind growth quite a bit. So far, the forecasts are that the trend in demand for forks will persist for some time, until the next jump in the MTC rate.