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Bitcoin Cash (BCH) – the most prominent hard fork of Bitcoin (BTC)’s blockchain – has surged over 117% this week, surpassing Bitcoin’s notable 15% increase. At the time of writing, it is the sole cryptocurrency to achieve gains nearing 2X during this period.
What factors are drawing traders and investors to the large-blocker network? Let’s explore.
Bitcoin Cash’s EDX Listing
The significant rise in Bitcoin Cash began on June 21, coinciding with the launch of the Wall Street-supported crypto exchange EDX Markets (EDXM).
Announced in September 2022, the exchange – supported by Citadel Securities, Fidelity Digital Assets, and Charles Schwab – pledged to provide: “a platform that can cater to both retail traders and institutional investors with high compliance and security standards.”
Upon its launch, the prominent exchange limited its listings to a modest four digital assets. Among these was BCH, which climbed to $231 on Tuesday, up from just $111 on June 21.
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BCH / USD. Source: TradingView
As reported by crypto market intelligence platform Santiment, BCH emerged as the primary beneficiary of the EDXM listing compared to the other coins on the platform, including BTC, Ether (ETH), and Litecoin (LTC). “Notably, $BCH has experienced a 3-year peak in social discussion rates, & volume has significantly surpassed 2023 highs,” the company tweeted on Friday.
Data from Coinglass indicates that liquidations for trades involving BCH have also skyrocketed this week, predominantly affecting short traders, suggesting that a short squeeze may be in progress.
Bitcoin Cash’s Regulatory Status
The acceptance of Bitcoin Cash by an exchange backed by Wall Street entities may be interpreted as implicit endorsement of the coin’s favorable regulatory status in comparison to other altcoins.
This month, the U.S. Securities and Exchange Commission (SEC) filed lawsuits against major crypto exchanges Binance and Coinbase for listing several alleged “securities,” including prominent coins like Cardano (ADA), Solana (SOL), and Polygon (MATIC).
The four coins mentioned have already received regulatory protections in specific areas of the global crypto market. For instance, Canada enforces a net buy limit of $30,000 per year for most cryptocurrencies on exchange users, but excludes BTC, ETH, LTC, and BCH from this restriction.
SEC Chair Gary Gensler has stated that he views Bitcoin as a distinct commodity due to its “unique history and creation story.” However, Bitcoin Cash is simply a fork of Bitcoin’s blockchain code, sharing Bitcoin’s historical context regarding its issuance.
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