- Bitcoin Cash (BCH) has gained over 30 percent in the last 24 hours to climb above $310.
- The rally can be attributed to the listing on EDX Markets as well as technical improvements.
Bitcoin Cash (BCH) has in the last 24 hours rallied by over 30 percent. In the last 7 days, the Bitcoin fork has staged a 116 percent increase. With a market cap of just over $6 billion, the digital asset is now the 14th largest cryptocurrency by market cap.
The exact reason driving BCH remains unclear but has enjoyed several positive developments. As CNF reported earlier this week, the digital asset became one of the four listed cryptocurrencies by wall street giant Citadel-backed EDX Markets. The listing of these cryptocurrencies on EDX Markets provides them legal advantage, being perceived as commodities, and not securities.
Although not officially registered with the U.S. Securities and Exchange Commission (SEC), EDX Markets carries significant weight in the market due to its institutional backers such as Fidelity Digital Assets, Charles Schwab, and Citadel Securities.
Read More: Bitcoin, Ethereum, LTC, and Bitcoin Cash Can Be Considered Non-Securities as Wall Street Giant Citadel-Backed EDX Lists All of Them
After the EDX Markets listing, BCH became the highest gainer, with 78 percent gains in just 4 days. As market analysis platform Santiment highlighted, BCH has further seen a 3-year high in social discussion rates and volume.
📈 With the assistance of #EDXMarkets, launched on June 20th, #BitcoinCash has been the biggest beneficiary with a massive +79% price gain in 4 days. Notably, $BCH has seen a 3-year high in social discussion rates, & volume has easily eclipsed 2023 highs. https://t.co/6fz4RL28tH pic.twitter.com/MNn59zRy8T
— Santiment (@santimentfeed) June 24, 2023
Another major reason is a new narrative about the status of the asset. The narrative surrounding Bitcoin forks is that they will get the same treatment as Bitcoin. Bitcoin is the only cryptocurrency the SEC has categorically disqualified from being a security. If so, Bitcoin Cash and Bitcoin SV are safe from the wrath of the regulatory agency. The same will boost its adoption by both retail investors and institutional investors.
Interestingly, Federal Reserve Chairman Jerome Powell said that cryptocurrencies like Bitcoin have “staying power” as an asset class.
As for crypto analyst Colin Wu, he noted that the recent rally could be owed to the South Korean market, He explained:
South Korea may be the reason for the BCH PUMP. In the past 24h, the largest exchange in South Korea, Upbit, has recorded a trading volume of over $350 million for the BCH/KRW, contributing to 23.58% of the total trading volume for BCH. It is also 3x the trading volume of the BTC/KRW on Upbit.
South Korea has introduced crypto-friendly regulations, which have driven mass adoption, pushing crypto prices for the top-tier coins in the market.
On its technical improvements, earlier this week, Bitcoin Cash’s open interest rose to $562 million, reaching its highest level since May 2021. This is a sign of improved sentiments and renewed interest in the market.
The wider market has further enjoyed the bullish wave sweeping the market with market leader Bitcoin edging closer to $31,000. The next couple of days will be crucial for BCH with investors keen to see if it can remain above the $300 support mark. Above this, it can build momentum for long-term gains.
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