The long forgotten bitcoin (BTC) hard fork has risen nearly 200% in a week, simply because traders are buying the wrong altcoin.
Bitcoin Gold (BTG), a holdover from the 2017 fork season, launched on the 9th. April traded at $113 – the highest price since February 2018 – after a daily gain of 30%, with trading volume of more than $250 million.
Bitcoin Gold posts weekly gain of 173%
In a strange contrast to the uncertain cryptocurrency market, Bitcoin Gold’s success doesn’t seem entirely genuine – but that’s not the fault of its owners or developers either.
As Cointelegraph reported on Tuesday, a new bitcoin fund run by Brazilian investment bank BTG Pactual will launch this week, having entered into a partnership with the Winklevoss twins in exchange for custodial management.
Although it has nothing to do with Bitcoin Gold, Brazil’s largest investment bank shares an altcoin ticker – and that coincidence was enough to make hungry buyers.
Following Gemini’s announcement, demand for Bitcoin Gold soared and at the time of writing there are no signs of softening. According to the feedback, this shows that the cryptocurrency industry is still in its infancy.
We’re so far ahead that people are buying Bitcoin Gold BTG because there’s a new fund called BTG Pactual, podcast host Anita Posch warned on Twitter.
No, it’s not cheaper in bitcoins!
On the other hand, Bitcoin Gold has done virtually nothing for price action after announcing a true partnership in late March.
BTG/USD 1-hour candlestick chart (Binance). Source: View of the shop
Nothing to do with Bitcoin
Bitcoin Gold emerged as one of several Bitcoin hard forks in 2017, a year that also gave birth to Bitcoin Cash (BCH), Bitcoin Diamond (BCD), and others.
Unlike his parents, Forks had little success. As Cointelegraph recently reported, despite the widespread growth of altcoins in general, BCH continues to lose value against BTC.
Some proponents have taken an aggressive marketing stance positioning the fork as Bitcoin itself, a misleading move that has likely also boosted demand.
Cointelegraph reminds us that buying Bitcoin Gold, Bitcoin Cash or any other cryptocurrency with a tick other than BTC means you own an altcoin, not Bitcoin itself.
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