Fueled by an Important Update and Exchange Support, BCH Value Skyrockets to a Yearly Peak

2023-06-29, 04:27

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<a href="/pt/price/bitcoin-cash-bch" target="_blank" class="blog_inner_link">Bitcoin Cash</a> (BCH) has emerged as a market leader over the past week, boasting an impressive 17% rise today alone, effectively doubling its value since it found a place on EDX Markets. This new crypto exchange platform, fortified by finance powerhouses, has accelerated BCH's performance to a new zenith and we set out on a mission to find out if it will stick.

Early Monday saw BCH hit a new yearly record, expanding its rally to over 100% since its addition to the list of four cryptocurrencies backed by EDX Markets, a crypto exchange with Wall Street institutional support. [BCH traded at a whopping $244](https://www.gate.io/trade/BCH_USDT "BCH traded at a whopping $244") in the past 24 hours, marking its peak since May 2022. Furthermore, <a href="/pt/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> Cash Price Index that monitors BCH's performance across different exchanges, have now seen a 111% increase over the past week.

Born from the original Bitcoin blockchain in July 2017, Bitcoin Cash intended to facilitate a payment network. However, Bitcoin still outperforms BCH in terms of transaction volumes, despite early positive outlooks and BCH is still at a substantial 95% deficit from its highest price of $4,355 in December 2017. Data from Gate.io shows that $92 million worth of BCH transactions occurred within the last 24 hours. So, the question is, could this be the time for BCH to soar? Let’s take a look at the moving forces behind this latest BCH rise and figure out if it is enough to secure a bright future for this well-established cryptocurrency.

## Why is BCH Booming?
The impressive BCH growth can be attributed to several factors such as its listing on EDX Markets, network updates, burgeoning trading volumes, and escalating interest on social media.

## EDX Markets goes live with BCH trading
EDX Markets, backed by influential traditional financial institutions like Fidelity Digital Assets, Charles Schwab, and Citadel Securities, began trading last Tuesday, supporting BCH, Bitcoin (BTC), Ether (ETH), and <a href="/pt/price/litecoin-ltc" target="_blank" class="blog_inner_link">Litecoin</a> (LTC). Naturally, the news of BCH being part of list has played a key role in the asset’s recent price increase. The move implies that TradFi institutional money is soon to gain access to the assets in question, which means fresh funds inflows and an increased demand.

This institutional crypto exchange entered the cryptocurrency scene with substantial backing from eminent financial establishments. The exchange, which officially launched on June 20, intends to draw in "industry leaders" by blending the best of traditional finance practices with unique advantages such as liquidity, competitive quotes, and a noncustodial model designed to eliminate potential conflicts of interest.

In the coming months, EDX has plans to launch EDX Clearing, a system intended to settle trades executed on the EDX Markets platform. This system will facilitate trades through a central counterparty, offering participants numerous benefits, such as enhanced price competition, reduced settlement risks, and improved operational efficiencies.

EDX recently completed a very successful raise, attracting strategic investors like Miami International Holdings, DV Crypto and more. These investors join an already robust coalition of founding investors, including Charles Schwab, Citadel Securities, Fidelity Digital AssetsSM, Paradigm, Sequoia Capital, and Virtu Financial. The company announced that the additional funding will be invested in furthering the development of EDX’s trading platform and cementing its position in the market.

## BCH Update Unveiled / Token analysis
The BCH network recently underwent a significant upgrade on May 15, enabling developers to generate tokens with identical properties to BCH, named "CashTokens". The network allows anyone to issue these tokens.

This upgrade, made at the block height of 792,772, includes support for CashTokens, which BCH developer Jason Dreyzehner views as a "tool for expanding financial access." Dreyzehner emphasizes that CashTokens can be utilized for various applications, ranging from payment stablecoins and commodities to gift cards and event tickets. He also points out that its underlying technology could enable advanced on-chain applications like decentralized exchanges (DEXs), security vaults, and bridged sidechains.

The recent price surge has piqued retail trader interest, with social discussions about the token reaching a three-year high and trading volumes this year setting a new record.

## Regulatory Landscape for Bitcoin Cash
The inclusion of Bitcoin Cash on an exchange fortified by Wall Street heavyweights could be interpreted as an implicit endorsement of BCH's relative regulatory safety vis-à-vis other alternative cryptocurrencies.

Earlier this month, the U.S. Securities and Exchange Commission (SEC) filed lawsuits against cryptocurrency exchange behemoths Binance and Coinbase for listing a multitude of purported "securities," including major coins such as <a href="/pt/price/cardano-ada" target="_blank" class="blog_inner_link">Cardano</a> (ADA), <a href="/pt/price/solana-sol" target="_blank" class="blog_inner_link">Solana</a> (SOL), and <a href="/pt/price/polygon-matic" target="_blank" class="blog_inner_link">Polygon</a> (MATIC).

Gary Gensler, the SEC Chair, has clarified that he perceives Bitcoin as a distinct commodity due to its "unique history and creation story." Yet, Bitcoin Cash is simply a split from Bitcoin's blockchain code, inheriting Bitcoin's issuance history.

The four cryptocurrencies supported on EDX Markets, however, have already secured regulatory safeguards in certain areas of the international crypto market. Canada, for instance, imposes an annual net purchase limit of $30,000 on exchange users for most cryptocurrencies but excludes BTC, ETH, LTC, and BCH from this stipulation.

## BCH Price Movements and Forecast
![](https://gimg2.gateimg.com/image/article/168801278820230629-121144.jpeg)

A close inspection of BCH's price trend reveals that the double top resistance level of $120 passed practically unnoticed by the market. There was a robust upward trend that surpassed the next barrier at $163.17, supported by the 23.6% Fibonacci level, and it then continued to rise all the way to the current level of $232.

The daily timeframe showcases a strong bullish candlestick pattern, indicating high investor buying interest.

Therefore, BCH is now moving towards the key resistance level of $270. While it has not yet crossed this level, minor adjustments might result in a retracement towards the $187 level.

The Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) indicators are currently back in the mid zone, indicating potential for one more bullish momentum.

However, if the price dips below $187, it could trigger further selling with targets at $145 or potentially even $133. On the flip side, a strong break above the $150 level could catalyze BCH's climb to new heights, over it’s current record.

Investors should keep a keen eye on the price action around the crucial $187 mark as it could significantly sway BCH's short-term trajectory. However, there are no current signs of BCH reaching the $1,000 mark in 2023, making it even more vital to focus on immediate price levels and key support/resistance areas.

With this in mind, [BCH price prediction](https://www.gate.io/price-prediction/bitcoin-cash-bch "BCH price prediction") models outline that by end of 2023, the asset should increase in value and float over $340 levels. It should then carry on a stable increase to reach $640 by 2030. This, however, may omit news and factors that are hard to predict but may affect future price movement.

## The Genesis of Bitcoin Cash
When BCH underwent a hard fork from the original Bitcoin (BTC) blockchain, it adhered to the principle of "fork fairness." Meaning, Bitcoin holders at the time of the fork received an equivalent amount of BCH.

This fair distribution approach was based on the snapshot of the Bitcoin blockchain at the time of the fork, ensuring that every Bitcoin holder received a 'free' allocation of BCH. For instance, if someone held 2 BTC at the time of the fork, they automatically received 2 BCH. This process, akin to a dividend payout to shareholders, further affirmed the decentralized nature of cryptocurrencies.

In conclusion, BCH appears to maintain a firm foothold at its current price level. The BCH <a href="/pt/price-prediction" target="_blank" class="blog_inner_link">price prediction</a> engines anticipate a steady rise, projecting that it could reach the high $400-$500 range by 2031. While this doesn't reflect a tremendous performance explosion, it's worth noting that all crypto tokens move in tandem. A new bull run could catapult BCH back to its starting point in a matter of weeks.

<div class="blog-details-info">
<div>Author: **Andrei**, Gate.io Researcher
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>

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