Crypto Exchange EDX Sparks BCH Rally: What’s Next for Bitcoin Cash?
Last week we witnessed the launch of EDX Markets, a new crypto exchange platform backed by prominent firms such as Citadel, Fidelity, and Charles Schwab.
This development received positive feedback from the community, signaling a growing endorsement of cryptocurrencies by traditional financial players. The exchange listed four assets during its launch: Bitcoin, Ethereum, Litecoin, and Bitcoin Cash.
On June 20, the day of the launch, Bitcoin experienced a 5.4% increase in value, while the other three assets saw more modest gains ranging from 3% to 3.6%. However, Bitcoin Cash (BCH) emerged as the standout performer in the subsequent days.
On June 21, BCH surged by 23.5%, followed by additional gains of 36.4% and 16.7% on June 23 and 24, respectively. By the end of the fifth day, BCH had reached a peak of $222, marking an impressive growth of over 111%. During the same period, BTC and ETH saw gains of 11% to 16%, while LTC’s value increased by 24%.
Clearly, the launch of EDX had a significant impact on BCH, but it had minimal effect on the other assets. Bitcoin, Ethereum, and other popular altcoins continued to dominate traders’ attention, leaving BCH somewhat overlooked. However, the past week witnessed a resurgence of interest in the Bitcoin-forked asset.
Santiment, a market analytics firm, recently highlighted that BCH-related discussions had reached their highest level since 2020. Alongside this three-year high in discussion rates, the trading volume for BCH also reached a new year-to-date peak, indicating a renewed focus on this asset among traders and investors.
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What lies ahead for Bitcoin Cash? Currently, BCH remains the top gainer among the top 100 assets on a weekly basis. However, the bullish sentiment appears to be waning at the moment. Over the past day, the asset retraced by over 8%, and today it has only experienced a minor increase of less than 2%.
In the derivatives market, the sentiment has clearly shifted. Although the futures open interest (OI) continues to hover around a yearly high of $14.63 billion, it’s worth noting that the funding rate is negative. This implies that while the current market conditions entice traders, bearish traders are willing to pay their bullish counterparts.
Moreover, the long-to-short ratio currently stands at 0.9, reinforcing the bearish sentiment. If these conditions persist, BCH may face challenges in sustaining its upward trajectory. Consequently, the likelihood of a pull-back occurring in the short term appears significantly higher at this stage.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
