Bitcoin Cash witnessed a substantial surge in its prices recently, propelled higher in the wake of a false statement regarding the U.S. Securities and Exchange Commission (SEC) purportedly greenlighting a spot bitcoin exchange-traded fund (ETF). This altcoin, born from a 2017 fork of the original Bitcoin, ascended above the $233 mark yesterday, according to data from CoinDesk.
Within a mere 24-hour span, this cryptocurrency managed to achieve an impressive gain of over 9%, as per additional CoinDesk data. While it did experience a minor retracement following this surge, Bitcoin Cash still retained a significant portion of its recent gains, trading at over $227 at the time of reporting.
Market experts chimed in on the unfolding price dynamics. Joe DiPasquale, CEO of the cryptocurrency hedge fund manager BitBull Capital, noted, “Altcoins like Bitcoin Cash tend to exhibit greater beta compared to Bitcoin, owing to Bitcoin’s larger market cap and relatively lower volatility.”
He further elaborated, “Historically, we’ve observed Bitcoin Cash displaying more pronounced beta movements, both on the upside and downside, than Bitcoin. As one of Bitcoin’s closest analogs among all altcoins, Bitcoin Cash’s rally can be attributed to heightened demand and price inflation in a less liquid market.”
Marc Bernegger, a member of the advisory board of fintech firm GenTwo, also provided insights. He emphasized, “The approval of a Bitcoin ETF represents a major milestone for the cryptocurrency market. Belief in the approval of a Bitcoin Spot ETF could foster increased optimism across the entire crypto sphere, including Bitcoin Cash, signifying growing institutional interest and legitimacy for cryptocurrencies.”
Bernegger added, “I believe that Bitcoin Cash simply surged because traders gravitated towards it following yesterday’s false news about a Bitcoin Spot ETF.”
Tim Enneking, the Managing Director of Digital Capital Management, contributed his perspective on the recent developments. He described Bitcoin Cash as “still distinct from BTC but struggling to maintain its own raison d’être.”
Regarding the recent price movement, Enneking emphasized, “I would say without a doubt that it’s echoing the moves in BTC.”