BCH and BSV are “overwhelmed” by Bitcoin in 2021

Market data shows that Bitcoin (BTC) has beaten its forks BTC Cash (BCH) and BTC SV (BSV) in price development in 2021.

In particular, BTC’s Annual Return (YTD) is currently 63.7% as the price hovers around $ 47,500. Meanwhile, BCH is up more than 20%, trading at $ 433, while BSV price is down more than 26% to $ 122.8 over the same period.

The most obvious gap remains the price development of BTC Cash and Bitcoin SV versus BTC. Specifically, the BCH / BTC exchange rate fell by more than 22.5% to 0.00916 compared to the beginning of the year. Meanwhile, BSV / BTC is down nearly 55% to 0.00258 BTC since the start of the year, suggesting capital mobility from Bitcoin forks.

Daily frame of the BCH / BTC and BSV / BTC price charts | Source: TradingView

Market dominance

Additionally, BCH and BSV – once among the top 10 cryptocurrencies by market capitalization – have lost ground to emerging Layer 1 blockchain projects.

In particular, the advent of Solana (SOL), Cardano (ADA), Terra (LUNA), Avalanche (AVAX) and other protocols has opened up more opportunities for merchants.

On the other hand, the main factors in attracting investors to BTC Cash and Bitcoin SV are still claims of greater scalability, which didn’t really help, as Bitcoin transaction fees have fallen by more than 50% this year.

Performance of the top 25 crypto assets as of December 30th | Source: Messari

This has resulted in a decline in the dominance of both Bitcoin Cash and Bitcoin SV. While BCH’s share of the overall crypto market fell from 0.84% ​​at the beginning of the year to 0.37%, BSV’s share also fell from 0.4% to 0.1% in the same period.

However, BTC’s market dominance also fell from 70% to less than 40%, outperforming Bitcoin Cash and BTC SV. This is mainly due to the increasing acceptance of private and institutional investors in search of safe havens against the inflation-friendly easing of the monetary policy of the banks.

“Inflation continues to rise, debt continues to rise, interest rates are close to zero and negative in some countries … Yes, it’s great to be a Bitcoin holder!”

Amazing growth data

 BTC also outperforms Bitcoin Cash and BTC SV based on developer activity.

Data compiled by CryptoMiso.com shows that this year Bitcoin approved 2,937 changes proposed by more than 100 contributors to its source code, the seventh largest number of commits recorded on GitHub. Meanwhile, BTC Cash and BTC SV have 1,099 and 496 commits, respectively, over the same period.

Commit BTC Cash and Bitcoin SV in 2021 | Source: CryptoMiso

The higher number of commits shows that there are more developers who want to improve the open source project. In contrast, the low number of commits warns of a slower improvement in the log.

Ultimately, Bitcoin SV has worse price performance, market dominance, and developer activity than BTC Cash. Investors have also lost confidence after the Bitcoin SV network suffered three 51% attacks and its co-founder Craig Wright remains embroiled in a series of lawsuits.

Now, BSV price is likely to see a decline if it breaks below long-term support near the $ 121.5 level, as shown in the chart below.

Weekly framework BSV / USD price chart | Source: TradingView

Conversely, a pullback from the USD 121.5 support could cause BSV price to test the 50-week exponential moving average (currently near USD 167) as its next upside target.

Likewise, the recent drop in price brought BCH close to multi-year rising trendline support. Hence, a pullback from this level could help BCH rally to $ 600 as shown by the Fibonacci levels below.

BCH / USD weekly framework price chart | Source: TradingView

Otherwise, a break below long-term support risks falling BCH price towards $ 195, a level that previously propelled the price higher.

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