Bitcoin Cash (BCH) has recently experienced a remarkable upswing, with its value soaring by 55% in just one week. This significant surge can be attributed to two key factors: BlackRock’s application for a Bitcoin spot ETF with the SEC and the launch of EDX Markets. In this blog post, we will analyze these factors and delve into the implications they have had on BCH’s recent price surge.
BlackRock’s Bitcoin Spot ETF Application:
BlackRock’s move to seek approval for a Bitcoin spot ETF from the United States Securities and Exchange Commission (SEC) has had a significant impact on the cryptocurrency market. This application has sparked a wave of similar proposals, creating a bullish sentiment in the market. This optimistic outlook has positively influenced Bitcoin and related projects, including Bitcoin Cash. The prospect of a regulated Bitcoin ETF has instilled confidence among investors, which has been reflected in BCH’s recent surge.
The Launch of EDX Markets:
EDX Markets, a new platform catering to institutional investors, has played a vital role in driving Bitcoin Cash’s recent price surge. Despite not being registered with the SEC, the platform is backed by industry giants Fidelity, Schwab, and Citadel Securities, lending it substantial credibility. The selective listing of cryptocurrencies on EDX Markets, including Bitcoin, Ether, Litecoin, and Bitcoin Cash, has been interpreted as a strong vote of confidence, particularly in Bitcoin Cash. This listing on a platform backed by major players in the financial industry signifies a regulatory clearance, which is significant as the SEC closely scrutinizes blockchain projects.
Bitcoin Cash Uptrend Fueled By Volume Spike on Upbit:
An unexpected surge in trading volume on the South Korean exchange, Upbit, along with a short squeeze, has further influenced BCH’s recent uptrend. A short squeeze occurs when the price of an asset rises, forcing traders who had bet against it to cover their positions at a loss or face forced liquidation. The price volatility resulted in approximately $19 million in liquidations within 24 hours, with short orders accounting for 77% of the total amount. This uptick in trading volume and liquidation levels has been the highest recorded in June 2023, indicating renewed interest and positive trading dynamics surrounding Bitcoin Cash.
Price Movement and Conclusion:
Bitcoin Cash’s value remained suppressed between $100 and $150 for a considerable period, but the listing on EDX Markets acted as a catalyst, driving the token’s value to reach levels last seen 14 months ago in May 2022. Currently, BCH is trading at $280.7, with a 5% decline in the past 24 hours. Despite the short-term fluctuations, the recent uptrend suggests a positive outlook for Bitcoin Cash.
The surge in BCH’s trading volumes on Binance, not witnessed in two years, is a clear indication of renewed interest and confidence following its listing on EDX Markets. This newfound interest can potentially pave the way for further growth and development in the Bitcoin Cash ecosystem.
In conclusion, the recent surge in Bitcoin Cash’s value can be attributed to BlackRock’s Bitcoin spot ETF application and the launch of EDX Markets. These events have ignited bullish sentiments in the market and have instilled confidence in the future of Bitcoin Cash. However, as with any investment, investors should exercise caution and conduct thorough research before making decisions in the volatile cryptocurrency market.