• Bitcoin SV (BSV) price surged to the highest level since March 1
• This rally is likely due to investors seeing it as a better alternative to BTC
• The rally may be a pump-and-dump scheme, and the coin could retreat back down soon
Bitcoin SV Price Jumps 48%
Bitcoin SV (BSV) price surged to the highest level since March 1 as investors moved to the coin, which is an alternative to BTC. BSV jumped to a high of $42.10, which was about 48% above the lowest level this year. The coin’s market cap has jumped to more than $748 million.
Reasons for the Jump
There was no news that pushed Bitcoin SV higher on Tuesday. A likely reason why the BSV is rising is because some investors believe that it is a better alternative to Bitcoin. As we wrote in this article on Monday, Bitcoin’s fees jumped on Monday because of elevated congestion in the network. As a result, Binance, the biggest crypto exchange in the world, suspended Bitcoin withdrawals several times on Monday. Bitcoin SV, which has less volume than the main Bitcoin, is therefore seen as a better alternative. For one, its transactions take less than 2 seconds to complete while the average transaction fee is about $0.0001. Also, the network can handle over 50,000 transactions per second (tps).
Is It A Pump-and-Dump Scheme?
The BSV price rally could be a pump-and-dump scheme where insiders or large holders buys an asset then promote it and exit at profit while leaving buyers holding bag; this situation is common among low volume coins like Bitcoin SV.
The daily chart shows that BSV has been in strong bearish trend and crashed by over 90% from its highest point on record; it moved slightly above crucial resistance point at $34 but will probably resume downward trend and retreat back down soon; next key support lies at $30 mark.
The current rally seen in Bitcoin SV may likely be driven by investors seeing it as an alternative option due its lower transaction fees and fast transaction speed compared with BTC; however this could also be just another pump-and-dump scheme with insider or large holders buying up then selling off when prices rise leaving buyers holding bag; according to daily chart analysis there seems little chance of continued growth and most likely scenario would see prices retreating down again with next key support lying at $30 mark