Bitcoin (BTC) is expected to beat its forked versions Bitcoin Cash (BCH) and Bitcoin SV (BSV) in terms of price-performance in 2021, according to market data.
Notably, BTC’s cumulative year-to-year (YTD) returns were nearing 60% at press time, with its price teetering at nearly $ 47,500. In comparison, BCH rose just over 26% to $ 435.50, while the price of BSV plunged more than 25% to $ 122.30 during the same time frame.
But the biggest takeaway remained the performance of Bitcoin Cash and Bitcoin SV against Bitcoin. In detail, the BCH / BTC rate fell over 22.50% YTD to 0.00916. Meanwhile, BSV / BTC fell nearly 55% YTD to 0.00258 BTC, signaling capital rotations out of Bitcoin forks.
Market dominance
Additionally, forked Bitcoin tokens – once counted among the top ten cryptos by market cap – have lost their position in favor of emerging layer one blockchain projects.
Notably, the arrival of Solana (SOL), Cardano (ADA), Terra (LUNA), Avalanche (AVAX) and other protocols have opened up more possibilities for crypto traders to park their money.
On the other hand, the main selling point of Bitcoin Cash and Bitcoin SV has remained the claim of greater scalability, which has not gained popularity with investors as Bitcoin’s transaction fees have fallen by. more than 50% this year.
This has resulted in a decline in the market dominance of Bitcoin Cash and Bitcoin SV. While BCH’s market share in the overall crypto market slipped to 0.37% from 0.84% at the start of this year, BSV’s market share also fell to 0.10% from 0.40% over the same period.
Bitcoin, whose market dominance also fell from 70% to less than 40%, nevertheless performed better than Bitcoin Cash and Bitcoin SV. This is mainly due to its growing adoption by retail and institutional investors as they sought havens from the lax inflation-friendly monetary policies of central banks.
Inflation continues to rise, debt continues to rise, interest rates close to zero, and in some countries negative …
Yeah, it feels good to be one #bitcoin incumbent!
– Lark Davis (@TheCryptoLark) December 19, 2021
Appalling development data
Bitcoin has also excelled on BCH and BSV based on developer activity.
Data retrieved by CryptoMiso.com showed that Bitcoin approved 2,937 changes suggested by more than 100 contributors to its source code this year, the seventh highest number of commits recorded on GitHub. By comparison, Bitcoin Cash and Bitcoin SV processed 1,099 and 496 commits in the same time frame.
A higher number of commits shows that more developers want to improve the open source project concerned. Conversely, a lower number alerts to a slower rate of improvement in the protocol.
Ultimately, Bitcoin SV turned out to be the worst performer than Bitcoin Cash in terms of price-performance, as well as market dominance and developer activity. Investors have also kept their distance as the Bitcoin SV network suffered three 51% attacks and its co-founder Craig Wright remained embroiled in a lawsuit, as TBEN covered earlier.
Now, the price of BSV could take more losses if it breaks below a long-standing support level near $ 121.50, as seen in the chart below.
Conversely, a pullback of the $ 121.50 support could cause the BSV price to test its 50-week exponential moving average (currently close to $ 167) as the next upside target.
Related: Best Crypto Winners and Losers in 2021
Likewise, the latest drop in the price of BCH brought it closer to its multi-year ascending trendline support. Therefore, a pullback from said level could have the Bitcoin Cash token rising by around $ 600 as the next target, as the Fibonacci levels below show.
Otherwise, going below the long-term support level risks setting the price of BCH on its way towards near $ 195, a level with a higher price sending history.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of TBEN.com. Every investment and trading move comes with risk, you should do your own research before making a decision.
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