Why Bitcoin Cash Price Shot Up Today

What happened with BTC?

Bitcoin’s cryptocurrency cousin Bitcoin Cash [BCH], surged 17.9292% this week. Its market cap now stands at $48.88 billion, with a volume of $3.68 million.

The crypto has been steadily rising throughout the year. Bitcoin cash has gone from $740 in July, to $3,180 in December, demonstrating strong growth.

It comes as no surprise that cryptos continue to soar as we enter the New Year. Clearly, bitcoin is still the crypto titan. But others, including bitcoin cash, are also riding this new e-currency trend. Especially as investors look to diversify their crypto holdings.

What was the cause?

Pairs trading also played a huge part in its increase. As BTC is similar to bitcoin, it has benefited from recognition amongst traders. This novelty has resulted in an increased purchase rate.

Bitcoin cash has been displaying price surges throughout the year. Back in November its price rose to $1,611, growing by 2.5%, roughly $300. And it shows no signs of slowing down.

Despite all this, financial experts speculate that cryptocurrencies have no underlying rate of return — arguing that there is nothing that supports bitcoin and its crypto relatives.

Whats in store for Bitcoin Cash?

As a counter point, people in countries such as Argentina have turned to cryptos to escape tight currency controls and various issues with their national currencies. Since 2014, Argentinian peer-to-peer trading has increased, so new cryptocurrencies like BTC have newfound relevance.

Bitcoin cash shows no signs of pulling the reigns towards their target goal of $2,387. No signs of growth resistance have been shown either. It created a new blockchain with bitcoin’s transaction history, but identified it as their own.

Many suggest bitcoin cash has very little value in the crypto market. Riding off bitcoin is a novelty that may wear off during the New Year. However, any rise in BTC will potentially contribute to other forms of cryptos rising in the future.

Cheers,

Nathan Frangoulis,

Junior Analyst, Money Morning


Money Morning is Australia’s most outspoken financial news service. Your Money Morning editorial team are not afraid to tell it like it is. From calling out politicians to taking on the housing industry, our aim is to cut through the hype and BS to help you make sense of the stories that make a difference to your wealth. Whether you agree with us or not, you’ll find our common-sense, thought provoking arguments well worth a read.

Money Morning Australia is published by Port Phillip Publishing, an independent financial publisher based in Melbourne, Australia. As an Australian financial services license holder we are subject to the regulations and laws of Corporations Act and Financial Services Act.


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