Bitcoin Cash (BCH) has seen a significant rally, with its value increasing by 55% in the past week. This rally can be attributed to two major factors: BlackRock’s recent application of a Bitcoin spot ETF with the US Securities and Exchange Commission and the launch of EDX Markets.
BlackRock’s move to obtain SEC approval for a Bitcoin spot ETF sparked a wave of similar applications, generating bullish sentiment in the cryptocurrency market. This sentiment has had a particularly positive effect on Bitcoin and related projects, including Bitcoin Cash.
However, the introduction of EDX Markets, a platform that caters to institutional investors, appears to be the primary catalyst behind Bitcoin Cash’s recent price hike. EDX Markets, backed by industry giants Fidelity, Schwab and Citadel Securities, is heavyweight despite not being registered with the Securities and Exchange Commission.
Jamil Nazarali, CEO of EDX Markets, expressed his confidence in the compliance of the four listed cryptocurrencies (Bitcoin, Ether, Bitcoin Cash, and Litecoin) with the SEC. The platform’s eclectic list of cryptocurrencies, which includes Bitcoin, Ether, Litecoin, and Bitcoin Cash, was interpreted as a vote of confidence, specifically in Bitcoin Cash.
BCH’s listing on EDX Markets is an indication of the token’s regulatory clearance. This interpretation is gaining importance as the SEC scrutinizes other blockchain projects.
Related reading: Here’s Why Bitcoin Flash Crashes To $29,000
Bitcoin Cash Bullish Driven by High Volume on Upbit
One of the major factors that could have affected the recent bull run in Bitcoin Cash (BCH) was the short squeeze and unexpected spike in trading volume on the South Korean stock exchange, Upbit. A short squeeze occurs when the price of an asset rises, causing traders who had bet on the price of the asset to cover their positions at a loss or face forced liquidation.
Volatility in the BCH price resulted in nearly $19 million in liquidations over the past 24 hours, with short orders accounting for 77% of the total amount. These liquidation levels mark the highest level recorded in June 2023, according to data from Coinglass.
BCH price has been heavily suppressed throughout the year, fluctuating between $100 and $150. However, its value saw a significant vertical rise after it was listed on EDX Markets. Currently, BCH is trading at $308.72, reaching levels last seen 14 months ago in May 2022.
According to the crypto research outlet tieBCH trading volumes on Binance have reached levels not seen in two years. This indicates a return of interest in trading in BCH after its listing on EDX Markets. This renewed interest highlights a positive shift in the trading dynamics surrounding Bitcoin Cash.
BCH is trading at $280.7 at press time, with a 5% decline in the last 24 hours.
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Featured image from iStock and charts from Tradingview, Bloomberg, and Coinglass