Traders could have made a mistake and linked a bank with the 2017 Bitcoin hard fork, leading to a soar in its trading action, coupled with its price. This week alone, the long-forgotten Bitcoin (BTC) hard fork has gone up by almost 200% just because investors are purchasing the wrong altcoin.
Bitcoin Gold (BTG) gained traction during the 2017 forking season then simmered down but as of Friday, it was trading at $113. This is the altcoin’s highest price since Feb. 2018. BTG experienced daily gains of 30% and it trading volume went up to $250 million.
How did BTG amass the 173% Weekly Gains?
Bitcoin Gold has always remained somewhat muted in the cryptocurrency scene and curious crypto enthusiasts have realized that this newfound success might not be wholly genuine. However, these gains are also neither the workings of its developers nor its holders.
On April 5 2021, Gemini had announced that they would serve as a trade execution partner and custodian for BTG Pactual’s Bitcoin 20 Multi-Market Investment Fund. This is the pioneer Bitcoin fund launched by a Brazilian investment bank. The biggest investment bank in Brazil has nothing to do with Bitcoin Gold, but the two share the same abbreviation, BTG, and this was more than enough to attract hungry investors towards BTC.
Is The Cryptocurrency Industry in the Inception Stages?
When the announcement by Gemini came out, Bitcoin Gold experienced a surge in demand and as the charts reveal, this demand might not abate any time soon. This might be a sign that the crypto scene is still in its inception stages with hungry enthusiasts who jump on any bandwagon without proper research.
BTG/USD 1-hour candle chart. Source: Tradingview
Anita Posch, a podcast host, warned Twitter users that we are still in the elementary stages if individuals are buying Bitcoin Gold after a new fund, BTG Pactual, came into the limelight.
— Anita ✊🏼🔑🏳️🌈🏊🏻🚴♂️☮️ (@AnitaPosch) April 7, 2021
To contrast all this hype, Bitcoin Gold actually made an announcement of an actual partnership in March but this caused no surge in its price action.
Bitcoin had nothing to do with this Bitcoin Gold Upsurge
Bitcoin Gold came to be together with Bitcoin Cash (BCH), Bitcoin Diamond (BCD) among others back in 2017 when multiple hard forks of Bitcoin were mushrooming. Compared to the parent, BTC, the forks BTG, BCH, BCD, and others have only attained limited success.
It should be noted that when one buys Bitcoin Gold (BTG), Bitcoin Cash (BCH), Bitcoin Diamond (BCD), or any other token that has a ticker that is not BTC means that they have purchased and hold an altcoin, not the parent itself, Bitcoin.
Image courtesy of flickr