Recently, the price of Bitcoin Cash (BCH) has surged significantly, attracting the attention of investors. By the end of June, BCH remained at around 130,000 won but quickly surpassed 400,000 won, recording the largest percentage increase among long-standing virtual assets.
Today, we will explore the reasons behind this surge and the future outlook for Bitcoin Cash.
Overview of the Bitcoin Cash project
Bitcoin Cash is a project that was born on August 1, 2017, through a hard fork from the Bitcoin blockchain. At that time, Bitcoin was optimizing its storage capacity by separating digital signature information within the block through a software upgrade called SegWit.
Some major mining companies, particularly Bitmain and ViaBTC, opposed the introduction of SegWit and led the independent launch of Bitcoin Cash. Wu Jihan, famous as the representative of Bitmain, was also actively involved in this hard fork.
Bitcoin Cash maintained the Proof of Work (PoW) method while expanding the block size to 8MB, allowing for faster and cheaper processing of more transactions. Thanks to this feature, it once rose to the 4th largest market cap but has since been pushed down to the 14th position due to competition from new projects.
Notably, Bitcoin holders were granted free Bitcoin Cash at a 1:1 ratio at the time of the SegWit introduction. In the bullish market of 2017, Bitcoin Cash even surpassed 5 million won, but it subsequently continued to decline, at one point dropping to the 100,000 won range. There were additional hard forks like Bitcoin SV and Bitcoin ABC (now called eCash), but the market response was limited.
Analysis of the reasons for the rise of Bitcoin Cash
The biggest reason for the recent rise in Bitcoin Cash is the listing on the new exchange EDX Markets (EDXM), led by Wall Street.
Following the collapse of the FTX exchange, the U.S. Securities and Exchange Commission (SEC) increased regulatory pressure by filing lawsuits against Binance, the world's largest exchange, and in response, EDXM was launched with the support of major financial institutions on Wall Street.
Currently, EDXM only supports trading in Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. While Bitcoin and Ethereum are already major assets difficult to manipulate in price, Litecoin has faced delisting issues on some exchanges, leading to a relative influx of investment demand into Bitcoin Cash.
In particular, at the domestic Upbit exchange, as of June 30, BCH trading volume reached about $350 million, accounting for about a quarter of global market trading volume, attracting explosive interest. The subsequent rise has been somewhat corrected and is stabilizing.
Strengths and future potential of Bitcoin Cash
Bitcoin Cash has a total issuance limit of 21 million coins, making it highly scarce, and the ability to trade freely regardless of security token regulations is an advantage. Additionally, its fast transaction processing speed and low fees compared to Bitcoin are also considered competitive factors.
It is still uncertain whether it can regain its past glory, but if positive events like the listing on EDXM continue, Bitcoin Cash may once again attract market attention. Strategic approaches will be necessary depending on future price trends and the global market atmosphere.
Please continue to check the official community and exchange announcements for more detailed information and market updates.
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