Bitcoin Gold (BTG) and Bitcoin Diamond (BTD) Mark Day of Forks Pumping in Price
Following the overnight doubling of Bitcoin SV (BSV), earlier Bitcoin (BTC) forks had a strong day.
Bitcoin Gold (BTG) and Bitcoin Diamond (BTD) pumped in response to the phenomenal performance of Bitcoin SV (BSV). Both coins are relatively early hard forks of Bitcoin (BTC), from the fall of 2017. Since then, most forks failed to command a high price and have drifted lower.
BTG added more than 23% overnight, trading at $30.28 as of 10:30 UTC on Thursday. The asset is up around 30% this week, on the back of the BTC rally to more than $8,900.
BTD drifts at a much lower price, hence it managed to grow by more than 50% overnight, to $1.61. But price movements like these are not unusual for BTD, and spikes to double the price have happened in the past, only to be followed by crashes.
BTD is still quite far from the initial price discovery phase, when it exceeded $85. BTG has also declined significantly from its $500 range prices, unable to recover previous positions. Both projects promised to improve on the Bitcoin protocol, but managed to remain just altcoins, with their own trajectories of development. The assets are extremely risky, often going through minor spikes and crash cycles.
In the case of BTG, the current price rally is actually an achievement, given that the coin started the second quarter at lows near $10. Tripling the price in three months happened on the back of the general market recovery. For BTG, a return to the $50 range would mean an escape from extremely low prices.
Traders on social media were highly skeptical of those price moves, seeing them as a temporary anomaly:
With the markets recovering, and the increased influence of stablecoins, it is possible for multiple assets to bounce off their lows and offer more rapid price appreciation. However, Bitcoin remains the leading coin, on which all other assets depend. Drops in BTC prices not only translate to a lower dollar price for most coins, but also break down market optimism.