Source: Coinmarketcap
What might be the cause of the sudden uptick in Bitcoin Cash (BCH) price, which has surged up to 170% in recent days? This remarkable increase has left investors and analysts puzzled. The value of BCH had been relatively stable, trading within a narrow range. However, the cryptocurrency has now witnessed a significant rise in value. Let's briefly examine 6 potential factors that may be contributing to this surge.
1. The growing merchants adoption of BCH
Over the past few months, several big merchants and smaller businesses have been jumping on the BCH bandwagon. They've been embracing BCH's advantages of speedy processing and lower fees (compared to Bitcoin). This move has allowed them to slash their costs and accept payments from non-traditional currency users.
The merchants' adoption rate for BCH grows almost everyday. For example, three days ago, Velocity 21 begin accepting BCH for payment. Also, a day ago King Kababs and Coffee started accepting BCH for payment. These are only a few of the many examples of merchants that are now accepting BCH. It's noteworthy that North QueenLand and ST kitts and Nevis are leading in the BCH economy with almost the cities taken over by merchants accepting BCH for payment.
2. The launch of CashToken on the Bitcoin cash chain
CashToken is the newest development on the Bitcoin cash chain with Defi capabilities that was released just a few weeks ago. There's a heavy cash flow into CashToken as investors try to take advantage of early birds syndrome to maximize their profit potentials.
Since smartBCH is yet to come out of water, most smartBCH projects and their investors migrated to CastToken bringing in fresh cash flow for their projects.
3. Bitcoin Lightning Network failure
This is another factor that may have contributed to the sudden rise in the price of BCH in recent weeks. The Lightning Network is an experimental layer for Bitcoin to enable fast withdrawal between Bitcoin addresses without requiring additional storage space.
However, the Bitcoin Lightning Network has plagued with many setbacks, and failed to meet the expectations of the investors. How this relate to BCH price may look confusing at first but it's very simple to understand.
At a time Bitcoin price is picking up, short term investors need a cheaper way to transfer Assets. BCH served this purpose perfectly as Bitcoin-Cash brings down the cost of transacting and speed as the same time. This obviously contributed to the recent surge in BCH price.
4. $500k BCH repurchased by the smartBCH foundation
Although many people are not aware of this, smartBCH foundation is an organization with a legal backing to revive the rugged smartBCH EVM chain, and a mandate to restore the stolen funds for the backing of a new decentralized bridge for the Defi chain.
The 500k BCH was recently repurchased at the open market, thus giving a spike to the price. It's rumored that the repurchase was facilitated through exchanges such as Bit.com. The repurchase (high volume) also contributed to the spike in BCH price.
5. Blackrock included BCH in their ETF filling
The Brackrock ETF filling is no longer news, but what most people don't know about is that BCH is one of the cryptocurrencies which was selected for inclusion in the ETF. Blackrock list Coinbase as the custodian for assets and pricing data. BCH is currently trading in volume on Coinbase.
Blackrock is one of the world's largest asset management company. They specialize in investing in traditional asset classes, such as shares and bonds. Investors are filling up their BCH bags waiting for the full, glorious ETF launch which we believe will happen soon.
6. EDX Exchange listing of BCH
This is the biggest one, and the only news related to BCH that most people are aware of. EDX is a new crypto exchange that has gained a huge support from The Wall Street top institutions including Fidelity investment, Citadel Securities, and Charles Schwab.
EDX Market was launched a few days ago, with BCH/USD as one of the major trading pair. The inclusion of BCH in such a platform that has the support of reputable investment institutions is one of the biggest reasons for the sharp spike in BCH price.
The significance of the EDX listing is huge for BCH. On one hand, it signal the end of BCH being considered a clone of BTC; on the other hand, BCH trading in a Wall Street giants supported exchange laid to rest the argument about its legitimacy and real potential in the Crypto world.
Nonetheless, It is important to mention whether this is just a short-term spike is yet unclear, what is clear now is that BCH is in the limelight again after a very long time in limbo land.
Conclusion
We believe this could be just the start for the rise of the BCH price. It is also important to note that some other factors that are mentioned in this write up could also have contributory effects for the rise of BCH.
We may see a sustained rise of BCH price after these events but these cannot be ascertained at this point.
If you think there are other factors for the rise of BCH price you can leave a comment below.