Bitcoin Cash
Bitcoin Cash Surges Close To 40% As Market Rebounds
Bitcoin Cash climbed sharply today, pushing higher as the broader cryptocurrency market continued to recover from its recent weakness.
The digital currency surged to as much as $1,317.27, CoinMarketCap data showed.
At this price level, the alternative protocol asset or “altcoin” had risen more than 38% from the low of $951.67 that it reached yesterday, additional CoinMarketCap figures reveal.
Further, Bitcoin Cash was more than 72% higher than Tuesday’s low of $764.04.
[Ed. note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
When explaining these sharp price movements, analysts noted several factors, including the broader recovery in cryptocurrency prices and also the struggle that the more traditional Bitcoin has been facing with high fees and network congestion.
Rebound Mode’
After hitting a local bottom close to $275 billion, the total market capitalization (market cap) of digital currencies has experienced a modest recovery, reaching more than $350 billion today, according to CoinMarketCap.
Charles Thorngren, CEO of Noble Alternative Investments, spoke to this development, stating that these cryptocurrencies are in “rebound mode.”
“Quick declines in this market place are often follow quick price increases,” he emphasized.
Marius Rupsys, a digital currency trader, also spoke to the recent developments in the broader market, emphasizing that many cryptocurrencies have been pushing higher in unison.
He pointed to the recent testimony provided by U.S. Securities and Exchange Commission (SEC) and U.S. Commodity Futures Trading Commission (CFTC) officials, which was more optimistic than anticipated and therefore credited with bolstering cryptocurrency prices.
User Fees
While some analyst commentary pointed to cryptocurrency’s recent recovery, others emphasized the lower user fees that Bitcoin Cash provides relative to the more traditional Bitcoin.
People have grown tired of bitcoin’s fees and confirmation times,” said Marouane Garcon, managing director of Amulet, a crypto-to-crypto derivatives platform that focuses on customer success and usability.
"Thorngren provided similar input, stating that Bitcoin Cash “has user fees less than Bitcoin and is a fraction of the cost of a Bitcoin.”
In addition, Bitcoin Cash is benefiting from rising adoption, stated Garcon, who noted that BitPay now allows transactions using the digital currency.
“I think BCH will continue to grow in popularity until Bitcoin’s scalability issues are solved,” he added, predicting that this resolution will not materialize ”anytime soon.”
Thorngren also provided an optimistic forecast for Bitcoin Cash, stating that:
“I’m definitely long on BCH because I don’t believe Bitcoin Core will make the necessary adjustments to make Bitcoin suitable for micro-payments.”
Disclosure: I own some Bitcoin, Bitcoin Cash and Ether.