The hard forks of Bitcoin, Bitcoin Cash and Bitcoin SV that diverged from the main chain have been in the spotlight in recent times. BCH and BSV prices have surged in the past seven days; they have outperformed Bitcoin itself.
Prices continue to rise high despite the markets showing a consolidated trend with small price swings. So the question now arises what triggered the rally and what does the rebound mean?
The markets had plummeted as the SEC sued Binance and Coinbase for irregularities in following US rules and regulations. Further, with the arrival of industry giants such as BlackRock, Invesco, WisdonTree, etc., the price caused a huge uptick. Bitcoin Cash (BCH) is among the top 5 cryptos in the top winners list, while Bitcoin SV is also on the list.
With the rise of BCH, BSV, ETC, and VET, Boxmining founder Michael GU speculated on China’s rise back into the crypto space.
China’s historical relationship with cryptos has been quite complex, including recurring bans that have always affected the entire crypto market. In recent times, however, China has been toning down its approach to crypto. Recently, Beijing released a whitepaper “Web3 Innovation and Development White Paper (2023) advocating Web3 technology as a critical part of the future growth of the Internet.
However, China also shares a history of being against cryptos. The first ever attempt by the People’s Bank of China (PBC) was in 2013 when it banned financial institutions from transacting in virtual currencies. Further, in 2017, officials increased sanctions on cryptos, particularly on ICOs. Later in 2021, China took the toughest measures and banned crypto mining. Markets fell more than 50% on the announcement.
Despite the ban, activities have not completely stopped in many sectors, according to some reports. If China considers lifting the ban or easing its stance on cryptos, global markets could take a big hit, boosting global demand and driving up prices. However, everything is currently still surrounded by assumptions and interpretations.
Therefore, the rise in the Bitcoin & Ethereum hard fork seems organic, but as the analyst says, some major events could take place in the coming days, pushing the markets past the bearish influence.