Bitcoin Cash (BCH) surged more than 50% over the past five days to reach a four-month high and become one of the best performing crypto assets of the week. BCH is trading at around $182 at the time of writing on June 23rd, making it one of the top 20 cryptocurrencies in terms of market capitalization. As it stands, BCH is the 20th most valuable coin with a market capitalization of over $3.45 billion and a circulating supply of over 19.42 million out of 21 million.
BCH’s surge was also accompanied by a notable surge in open interest, renewing investor interest in altcoins that promise lower transaction fees and scalability than its parent blockchain, Bitcoin, which still has limited scalability. indicates that
Bitcoin Cash rises as sentiment improves
Rising prices for Bitcoin Cash and cryptocurrencies in general are believed to support positive market sentiment and underlying developments in the industry. In particular, growing interest from financial institutions such as BlackRock, the world’s largest asset manager with over $9 trillion, has been cited as a major driver of Bitcoin’s price. BlackRock has filed a Bitcoin Spot Exchange Traded Fund (ETF) application with the U.S. Securities and Exchange Commission (SEC).
Bitcoin Cash is an altcoin that was introduced through a hard fork from Bitcoin in September 2017. The platform is scalable and can process transactions more cheaply. However, while maintaining the same consensus algorithm as Bitcoin, the Bitcoin Cash network is able to squeeze more transactions into every block given its larger block size.
Rising bullishness across the cryptocurrency industry is having a positive impact on BCH. According to CoinMarketCap data, BCH surpassed Bitcoin, Ethereum and other liquid crypto assets. In the top 20, BCH was up 70% in the previous week’s trading and 35% on its final trading day alone.
At this level, the Bitcoin Cash network is worth more than Cosmos, Monero and Uniswap. Meanwhile, BCH is at a 4-month high and bulls are pushing the price above key resistance, trading at a 13-month high in the May 2022 region.
Soaring BCH open interest
Behind this is a surge in open interest, suggesting an increase in both speculative and hedging activity around BCH. Extending this development, traders and investors may consider June 23rd’s surge and take positions in anticipation of further price gains.
according to coin glass, BCH open interest surpassed $229 million, an 85% surge in the previous trading day. BCH-related trading volume surged fourfold over the period, surpassing $2.8 billion.
Features Images from Canva, Charts from TradingView