Bitcoin SV sinks by nearly 22% as Robinhood selectively delists the asset

Bitcoin SV (BSV), the hard fork of king coin Bitcoin, noted a sudden rise in selling pressure as Robinhood announced the termination of support for the cryptocurrency. Robinhood has received significant attention in the media in recent days, particularly in connection to the collapse of FTX.

Robinhood bids Bitcoin SV adieu

Robinhood, in an announcement on Wednesday, stated that over the next two weeks, the cryptocurrency exchange would be ending support for Bitcoin SV. Users have the opportunity to buy, sell, hold and transfer BSV until the deadline, after which all the BSV in users' accounts will be sold at market value and credited into the account's buying power.

Robinhood did not state a clear reason as to why the asset was being delisted after more than four years of being on the platform. However, the firm did say that the step had been taken following regular review based on a rigorous framework.

Apart from this development, Robinhood has been making headlines over the last few days for its association with the FTX saga. The former CEO of the bankrupt cryptocurrency exchange, Sam Bankman-Fried, sought to assert control over 55 million shares of Robinhood, valued at $450 million, which were linked to both FTX and Alameda Research. 

However, the shares were requisitioned by the Department of Justice this week, citing their association with money laundering and wire fraud violation by Bankman-Fried.

Bitcoin SV price dips to two-month lows

Bitcoin SV price, trading at $39.25, reacted to the announcement as the cryptocurrency fell by 12% in the last 24 hours. Plunging from $44.65, the altcoin fell by almost  23% before climbing back to the current trading price.

At the time of writing, Bitcoin SV price is hovering right above its immediate support at $38.65. If the altcoin bounces off it and leverages the broader market's bullish cues, BSV might be able to recover its losses. 

Breaching the resistance at $40.65 would enable the Bitcoin hard fork to rise and tag the critical resistance at $42.10. Flipping this level into a support floor would allow the cryptocurrency to initiate a recovery rally and tag $44.70.

BSV/USD 1-day chart

However, if the decline continues, Bitcoin SV might end up slipping to $36.95, which acts as the critical support level for the altcoin. A daily candlestick below this level would invalidate the bullish thesis, leaving BSV vulnerable to a dip toward two-month lows of $35.45.