In a somewhat surprising turn of events, Poloniex decided to launch a Bitcoin Cash trading market. The company did announce they would allow withdrawals starting today. However, there was no indication of launching a BCH market until a few hours ago. It’s good to see BCH gain more support in this regard. The bigger question is how this will all play out for the altcoin in the long run. More exchanges mean more liquidity, which is always good.
Seeing Bitcoin Cash on Poloniex is pretty interesting. More specifically, it means more support is coming to the BCH ecosystem as a whole. After all, Poloniex is still a major exchange to this very day. Despite dealing with some major issues as of late, people still see it as the world’s largest altcoin exchange. They are facing some stiff competition from Bittrex in this regard, though. Bitcoin Cash is now trading on both platforms, which can yield some exciting competition.
Poloniex Opens a Bitcoin Cash Market all of a Sudden
So far, it seems as if Poloniex is following the rest of the market price-wise. One could almost argue people are carefully manipulating the BCH price. For the past week, it has not been allowed to go over US$300 for more than a few minutes at a time. If the Bitcoin price goes up, people bring BCH down to maintain this price level. That is rather interesting to take note of, though. It is impossible for this to be natural market trading, that much is evident. Someone is working hard to keep BCH down where it is right now. The ulterior motive remains unclear if that is the case, though.
With Poloniex on board, things can get very interesting. More exchanges providing more liquidity makes it more difficult to control the price artificially. It will be interesting to see how the Bitcoin Cash market evolves over the next few weeks. For now, everything has virtually stayed as it is. There appears to be little pressure on the markets through the order book, though. Instead, people are simply waiting to dump their coins as soon as the price shows little upward momentum.
Bitcoin Cash will not go away anytime soon, though. Speculators expect BCH could reach a value of US$1,000 in the near future. To do so, a lot will need to change in the coming weeks. With mining profitability still pretty low, there is no reason for people to hold onto the BCH they own. Instead, we will see more coins dumped on the market at bottom prices whenever possible. An interesting situation that can only be maintained for so long, though.
Header image courtesy of Shutterstock
