Bitcoin Cash (BCH) has seen a dramatic rally, with the cryptocurrency surging over 33.3% in the last 24 hours to a 14-month high of $320.
The rise in BCH‘s value represents a cumulative gain of 183% since June 20, the debut date of EDX Markets, a crypto exchange backed by Fidelity, Charles Schwab, and Citadel.
BCH was one of only four coins available for trading at EDX Markets’ launch, along with Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC).
The inclusion of BCH in the list was a strategic decision, considering these cryptocurrencies are viewed as compliant with the U.S. Securities and Exchange Commission’s requirements. This has added to the allure of BCH, resulting in a considerable price surge.
The latest price surge is primarily fueled by an increase in trading activity on South Korea’s premier digital assets exchange, Upbit.
The Bitcoin Cash-Korean Won (BCH/KRW) pair listed on Upbit has reported a trading volume of $557.63 million in the past 24 hours, nearly 3.5 times larger than the volume of the BTC/KRW pair and 5.5 times the BCH/USD volume on Coinbase.
Another South Korean exchange, Bithumb, has also seen large BCH volumes in local currency trading, second only to its BTC/KRW pair.
Commenting on the rally, industry analyst Colin Wu stated that South Korea could be a primary driver of the current Bitcoin Cash price surge. Wu observed that the BCH/KRW pair on Upbit accounted for almost a quarter of the total volume for BCH in the past 24 hours, making it the most traded asset on Upbit during that period.
Despite the impressive momentum, it’s important to note that BCH still remains down by 92% from its all-time high of $3,785 in December 2017. Furthermore, Bitcoin, the progenitor of Bitcoin Cash, only managed a 2% gain in the last 24 hours.
The role of hope and a touch of greed in the crypto markets cannot be understated, as observed by Lawrence Lewitinn, The Tie Director of Content. He noted that this combination often fuels market movements in the cryptocurrency space, regardless of underlying fundamentals. The current BCH rally is no exception, with traders and speculators looking to capitalize on the bullish sentiment in the BCH market.
The rally aligns with a broader bullish trend in the cryptocurrency market, partially driven by Bitcoin ETF applications from companies like Blackrock, WisdomTree, and Invesco. Though these proposals do not directly impact Bitcoin Cash, analysts speculate that acceptance of a Bitcoin ETF could pave the way for similar products for Bitcoin Cash.
