The Drivers Behind Bitcoin Cash’s 200% Rally
Bitcoin Cash (BCH), widely regarded as one of the most successful Bitcoin forks, has experienced an astonishing 200% price surge within a mere 10-day span. This remarkable achievement positions it among the select few cryptocurrencies to triple their value in such a short period.
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Experts attribute the primary reason for this swift ascent to the launch of the new cryptocurrency exchange, EDX Markets (EDXM), on June 21, 2023. The most liquid and popular assets — Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH) — were all listed on the first day of the trading platform's operations.
Bitcoin Cash is one of the four cryptocurrencies available for trading on EDX Markets. Source: edxmarkets.com
EDXM has received robust backing and investments from reputable sponsors and investors such as Fidelity Digital Assets, Citadel Securities, Virtu Financial, Charles Schwab, Sequoia, Paradigm, DV Chain, GSR, GTS, and HRT. To mitigate potential regulatory challenges, the exchange has chosen a non-custodial operating model, where the assets involved in trading are held in the wallets of their respective owners. The platform itself does not store any funds nor act as a custodian. This model aligns with the approach adopted by the majority of decentralized crypto exchanges.
Bitcoin Cash's listing on a stock exchange sponsored by Wall Street corporations, along with assets such as BTC (known as “digital gold”), ETH, and LTC (known as “digital silver”), signifies its admission into the elite group of the most secure, valuable, and liquid digital assets in the cryptocurrency market.
Nevertheless, other assets featured on EDX Markets have shown significantly more subdued responses. For instance, over the same period, BTC only grew by 17%, ETH by 12%, and LTC by 25%. These growth rates pale in comparison to Bitcoin Cash's extraordinary +200% surge. Therefore, it's clear that additional factors contributed to this explosive rally…
Bitcoin Cash price chart throughout June 2023. Source: coinmarketcap.com
Additional Catalysts for Bitcoin Cash's Rise
Hashrate Growth
One striking detail is the considerable growth in Bitcoin Cash's network hashrate. In just ten days, it escalated from 1.3411 Ehash/s to 5.0444 Ehash/s, almost quadrupling. This positive shift in hashrate suggests a broad-scale deployment of new mining equipment for participation in BCH coin emission.
Increase in Bitcoin Cash's hashrate. Source: bitinfocharts.com
The network's hashrate is determined by the quantity and power of devices involved in mining crypto assets. Therefore, the hashrate metric directly impacts a miner's profitability: the greater the hashrate of their equipment, the faster the mining speed, and the higher the likelihood of receiving a reward for creating a block.
Hence, during the last ten days of June, the number of individuals interested in mining Bitcoin Cash increased nearly fourfold, a trend not observed with BTC, ETH, and LTC, where the hashrate change was relatively minor.
Increase in Wallet and Holder Numbers
The count of active BCH wallets escalated by nearly 100,000 within just a few days! In general, with over 25.5 million non-empty wallets, Bitcoin Cash is only outperformed by Bitcoin and Ethereum. This might surprise some, but BCH is the third most-held crypto asset globally.
Rise in the number of active wallets holding BCH coins. Source: coinmarketcap.com
Global Acceptance of Bitcoin Cash by Merchants
Another influential factor is the consistent increase in the number of merchants and outlets that accept Bitcoin Cash as a payment method. After Bitcoin, BCH is the second most favored crypto asset that global supermarkets, restaurants, and hotels accept. June was no exception, with the merchant network expanding consistently during this period.
The count of merchants and outlets accepting Bitcoin Cash continues to grow. Source: map.bitcoin.com
All in all, Bitcoin Cash certainly deserves to be in the spotlight…
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