Bitcoin Cash (BCH), one of the early offshoots of the original digital currency, has experienced a significant surge in value, more than doubling in the past week. The rally was sparked by the launch of a new cryptocurrency exchange, EDX Markets, backed by prominent firms such as Citadel Securities, Fidelity Digital Assets, and Charles Schwab Corp.
EDX Markets, an institutional-only exchange introduced in September 2022, enables trading in four cryptocurrencies: Bitcoin, Ether, Litecoin, and Bitcoin Cash. The platform’s launch has instilled optimism among investors, with Bitcoin Cash emerging as a favoured altcoin for speculative traders seeking regulatory clarity in the crypto-assets space.
The recent surge in Bitcoin Cash’s popularity can also be attributed to BlackRock’s application for a Bitcoin ETF earlier this month. The prospect of regulatory approval for a Bitcoin ETF has generated positive sentiment in the market, further fueling the interest in alternative cryptocurrencies.
Spencer Hallarn, a derivatives trader at crypto investment firm GSR, highlighted the growing appeal of Bitcoin Cash, stating that it has attracted speculative traders seeking alt-coins with better regulatory clarity. Bitcoin Cash’s rise can be traced back to its split from Bitcoin in 2017, which triggered the forking craze as multiple software development teams modified the original code and released new coins with “Bitcoin” in their names.
Despite its early momentum, Bitcoin Cash has faced challenges in gaining widespread acceptance compared to Bitcoin, which has soared in value. Currently, Bitcoin Cash ranks as the 19th largest cryptocurrency with a market value of approximately $4.4 billion, according to CoinMarketCap data. In contrast, Bitcoin accounts for around half of the total crypto market’s value, with a market cap of approximately $586 billion.
On Monday, Bitcoin remained relatively stable at around $30,177, just below its one-year high reached the previous week. Following the EDX announcement, Litecoin saw a 12% increase in value, while Ether experienced a 7% gain, reflecting the overall positive sentiment surrounding the launch of the new cryptocurrency exchange.
The surge in Bitcoin Cash’s value and the ongoing interest in cryptocurrencies signal a growing appetite for digital assets among investors, driven by increased regulatory clarity and the potential approval of Bitcoin ETFs. As the cryptocurrency market continues to evolve, the performance of altcoins like Bitcoin Cash will be closely monitored for further growth opportunities.