Bitcoin Cash (COIN: $BCH) has tightened its grip on the crypto market for the last month with an impressive performance.
In June 2023, the Bitcoin hard fork experienced a strong, bullish trend. Thus far, it has surged over 150% from its lowest level in May 2023. This article will examine what is behind the rally and whether it is sustainable.
Bitcoin ETFs Behind Rally
Industry analysts all agree that the most likely reason for the $BCH rally is the recent announcements of planned ETFs. Major firms like WisdomTree and BlackRock have announced that they plan to launch Bitcoin ETFs. If approved, it would lead to a surge of institutional money into the crypto sector.
While a Bitcoin ETF is not directly linked to Bitcoin Cash, financial experts speculate that if a Bitcoin ETF is approved, companies will quickly file a Bitcoin Cash spot ETF. The speculation is based on the fact that Bitcoin and Bitcoin Cash are similar, as $BCH is a Bitcoin fork.
Due to their similarity to Bitcoin, other cryptocurrencies that could benefit are Litecoin and Bitcoin SV. However, there are doubts regarding Ethereum due to its staking feature, which the SEC views as a securities violation.
Why Bitcoin ETFs Likely To Succeed
The main reason there is so much optimism is that BlackRock has entered the Bitcoin ETF game. In the past, financial regulators in the US have rejected Bitcoin ETF applications. However, many people are optimistic BlackRock will succeed.
The optimism is based on the fact that BlackRock is one of the biggest investment management firms in the world. As such, many people expect that a company with so much financial muscle will have an easier time navigating the complex legal minefield required to launch a Bitcoin ETF.
Bitcoin Cash Listing on New Crypto Exchange
Another reason for the Bitcoin Cash surge in June is its listing on EDX Markets, a new crypto exchange. Schwab, Fidelity, and Citadel, all leading financial services firms, backed EDX Markets’ launch. Consequently, many experts predict it will attract institutional money into the cryptocurrency ecosystem.
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Lower Price
Another reason why Bitcoin Cash is doing well is that it costs less than Bitcoin. For example, one Bitcoin is worth around 131 BCH. For people who missed the ground floor of Bitcoin, $BCH offers them an opportunity to reap big. It has most of the features of Bitcoin, plus various other advantages, like bigger blocks, faster transactions, and lower fees.
Summary
While Bitcoin Cash may never truly challenge Bitcoin for dominance, it is still a solid blockchain network. In the near term, its performance is likely to remain impressive, and in the long-term, $BCH is one of the most long-term viable coins, having proven its mettle over the years.
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