Bitcoin Cash (BCH) has experienced a remarkable revival, with its value rising by 55% in the past week. This increase can be attributed to two main factors: BlackRock’s recent filing for a Bitcoin spot ETF with the US Securities and Exchange Commission and the launch of EDX Markets.
BlackRock’s move to seek SEC approval for a Bitcoin spot ETF has sparked a flurry of similar filings, sparking upbeat sentiment in the cryptocurrency market. This sentiment has had a particularly positive impact on Bitcoin and related projects, including Bitcoin Cash.
Nevertheless, the introduction of EDX Markets, a platform for institutional investors, appears to be the main catalyst behind Bitcoin Cash’s recent price increase. EDX Markets, backed by industry giants Fidelity, Schwab and Citadel Securities, carries significant weight despite not being registered with the SEC.
Jamil Nazarali, CEO of EDX Markets, expressed confidence in the compliance of the four exchange-listed crypto tokens (Bitcoin, Ether, Bitcoin Cash, and Litecoin) with the SEC. The platform’s selective list of cryptocurrencies, including Bitcoin, Ether, Litecoin, and Bitcoin Cash, has been interpreted as a vote of confidence, particularly in Bitcoin Cash.
BCH’s listing on the EDX Markets exchange is an indication of the token’s regulatory approval. This interpretation is gaining significance as the SEC scrutinizes other blockchain projects.
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Bitcoin Cash Uptrend fueled by volume spike on upbit
A major factor that could have influenced the recent uptrend in Bitcoin Cash (BCH) is the short squeeze and an unexpected increase in trading volume on the South Korean exchange Upbit. A short squeeze occurs when the price of an asset rises, otherwise traders who had bet against the asset’s price to hedge their positions at a loss would face forced liquidation.
The volatility in BCH’s price resulted in liquidations of approximately $19 million in the past 24 hours, with short orders accounting for 77% of the total amount. These liquidation levels represent the highest recorded in June 2023, according to Coinglass data.
The price of BCH remained heavily suppressed throughout the year, fluctuating between $100 and $150. However, the value experienced a significant vertical increase after being listed on EDX Markets. Currently, BCH is trading at $308.72, last reaching its level 14 months ago in May 2022.
According to crypto research outlet The tie, BCH trading volumes on Binance have reached levels not seen in two years. This indicates a resurgence of BCH’s trading interest after its listing on EDX Markets. This renewed interest points to a positive shift in trading dynamics around Bitcoin Cash.
BCH is trading at $280.7 at the time of writing, down 5% in the last 24 hours.
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Featured image from iStock and charts from Tradingview, Bloomberg and Coinglass
