Bitcoin Cash (BCH) Surges 55% After Blackrock’s ETF Application, EDX Markets Launch

Bitcoin Cash (BCH) has experienced remarkable growth, with its value increasing by 55% in the past week. This surge can be attributed to two major factors: BlackRock’s recent filing with the United States Securities and Exchange Commission for a bitcoin spot ETF and the launch of EDX Markets.

BlackRock’s move to seek SEC approval for a bitcoin spot ETF has sparked a wave of similar applications, creating bullish sentiment in the cryptocurrency market. This sentiment has had a particularly positive effect on related projects including bitcoin and bitcoin cash.

Nonetheless, the launch of EDX Markets, a platform that caters to institutional investors, appears to be the primary catalyst behind Bitcoin Cash’s recent price increase. EDX Markets, backed by industry giants Fidelity, Schwab and Citadel Securities, holds significant importance despite not being registered with the SEC.

Jameel Nazarali, CEO of EDX Markets, expressed confidence in the compliance of the four listed crypto tokens (Bitcoin, Ether, Bitcoin Cash and Litecoin) with the SEC. The platform’s selective list of cryptocurrencies, which includes bitcoin, ether, litecoin and bitcoin cash, has been interpreted as a vote of confidence in bitcoin cash in particular.

The listing of BCH on the EDX Markets exchange is an indication of regulatory approval of the token. This interpretation gains importance as the SEC investigates other blockchain projects.

related reading, Here’s What Caused Bitcoin’s Sudden Drop to $29,000

Bitcoin Cash uptrend boosted by volume spike on Upbit

One of the major factors that could be affecting the recent rally in Bitcoin Cash (BCH) is the low and unexpected surge in trading volume on the South Korean exchange, Upbit. A short squeeze occurs when an asset’s price rises, leading traders who bet against the asset’s price to cover their positions at a loss or face forced liquidation.

The volatility in the price of BCH resulted in the liquidation of nearly $19 million within the past 24 hours, with 77% of the total amount being short orders. According to CoinGlass data, these liquidation levels represent the highest level ever recorded in June 2023.

BCH price was heavily suppressed throughout the year, fluctuating between $100 and $150. However, its value increased significantly after being listed on EDX Markets. Currently, BCH is trading at $308.72, a level last seen 14 months ago in May 2022.

According to crypto research outlet Tie, BCH trading volume on Binance has reached levels not seen in two years. This signals a resurgence of trading interest for BCH after its listing on the EDX market. This renewed interest highlights a positive shift in the trading dynamics surrounding Bitcoin Cash.

At press time, BCH is trading at $280.7, down 5% over the past 24 hours.

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Featured image from iStock and charts from TradingView, Bloomberg and CoinGlass