- Coinbase intensifies its distancing from Bitcoin SV (BSV) by announcing an end to support; users must withdraw their BSV by January 9 to avoid automatic liquidation.
- Bitcoin SV’s market reacts with a slight dip amid this announcement, as the cryptocurrency continues to face challenges, including past 51% attacks and delisting from multiple exchanges.
Coinbase, a heavyweight among cryptocurrency exchanges, has issued a final call to its users holding Bitcoin SV (BSV) – withdraw your assets by January 9, or the platform will liquidate your holdings. This move comes two years after the exchange initially delisted the coin in 2021 and is a significant step in the platform’s apparent distancing from the BSV ecosystem.
The Market’s Muted Response
The response from the market was somewhat restrained, with BSV experiencing a marginal decline of 1.74%. This reaction is perhaps muted due to the asset’s relatively low liquidity; it commands a daily trading volume of around $29.5 million and a market capitalization of $945 million.
The Craig Wright-backed cryptocurrency, often touted as the true vision of Bitcoin‘s pseudonymous creator, Satoshi Nakamoto, has not only faced opposition from Coinbase. Several other prominent exchanges have also removed BSV from their listings. This has been partly in response to Craig Wright’s controversial claims of being Satoshi himself—a claim that has been met with skepticism within the crypto community—and partly due to the network’s susceptibility to 51% attacks.
Such attacks, which occurred multiple times in 2021, allow attackers to control the majority of mining power, thus enabling them to potentially reverse transactions or double-spend.
In a high-profile instance of industry backlash, Changpeng Zhao, the CEO of Binance, removed BSV from his exchange in 2019, labeling Wright a fraud and sparking a debate on the authenticity of his claims and the integrity of the BSV network.
The Technical Perspective on BSV
From a technical analysis standpoint, BSV appeared to be struggling with resistance. Despite breaking out from a descending resistance trendline in place for over 800 days, it failed to overcome the $50 horizontal resistance area—a significant level that has acted as both support and resistance since 2018.
With the RSI, a momentum indicator, maintaining above 50 on the weekly charts, there’s an inclination to interpret the trend as bullish. Nonetheless, the daily RSI presents a more ambivalent picture, suggesting uncertainty ahead for BSV’s price trajectory.
As Coinbase users face the impending January 9 deadline, the future of BSV remains uncertain. While a surge above the $56 resistance level could suggest a bullish future, failure to do so may lead to a continued decline, especially as the coin contends with the fallout of Coinbase’s decision and its potential ramifications across the cryptosphere.