Our experts talked about the reasons for Bitcoin Cash price growth and its prospects as an asset for big investors
Bitcoin Cash (BCH) cryptocurrency reacted with a sharp jump to the news of the launch of a cryptocurrency exchange. For institutional investors, EDX Markets and doubled in less than a week.
The cryptocurrency began to rise in value after news of the launch of EDX Markets, a cryptocurrency exchange for institutional investors, in the United States. Which was backed by major financial firms such as Citadel Securities, Fidelity Digital Assets and Charles Schwab. The new exchange offers trading in four cryptocurrencies, including Bitcoin Cash (BCH). The other three assets on EDX were Bitcoin, Ethereum (ETH) and Litecoin (LTC). A week before, BlackRock also applied for an exchange-traded fund (ETF) for Bitcoin, which also added to the market’s optimism.
A bit of history
The cryptocurrency Bitcoin Cash emerged in 2017 as a modified copy (fork) of Bitcoin itself with an increased transaction block size. This approach made payments in BCH faster and cheaper compared to the “original” Bitcoin. But it did not solve a number of other technical problems, including the lack of support from interested professional developers. Proponents of Bitcoin Cash promotion, the most famous of which is considered to be Roger Wehr. He positioned it specifically as a currency for everyday payments, as opposed to Bitcoin as a store of value.
Bitcoin Cash now
Now there was a change because BCH had a low base effect. This is when one positive factor was enough for the price to take off. And the participants, who played on the decrease, were liquidated. In fact, the price growth occurred precisely due to liquidations, our experts say.
The second important factor was that BCH appeared as an asset on the EDX Markets. The choice of this asset is clear, because it has almost no risk of being recognized as a security. This means they can be traded without the risk of encountering the actions of regulators. Thus, American investors saw this as a signal to buy the asset. And which in the long run could become a legally traded cryptocurrency in the U.S.
Bitcoin is the undisputed leader among institutional investors. But it so happens that BCH, LTC, ETH as old projects of the crypto market also enjoy some popularity among them. The main reason is that these coins have already proved their viability. And secondly, they are highly likely not to be classified as securities. For institutionalists who don’t just manage their own money. But above all other people’s, this is a large and significant factor in making investment decisions, our experts say