BCH doubles in a week, sees biggest bets in 2 years.
Key takeaways
- The open interest for Bitcoin Cash futures has surged to over $400 million, indicating increased inflows and positive sentiment.
- The introduction of plans for a scaling system called “CashTokens” has added to renewed interest in Bitcoin Cash.
- The sudden trading interest in Bitcoin Cash can also be attributed to a network upgrade and an influential exchange listing.
The value and activity of the Bitcoin offshoot network has experienced a revival, with BCH prices doubling in the past week, making it one of the top-performing tokens with a market capitalization above $1 billion. In comparison, Bitcoin and Ether added 13% and 8% respectively in the same period.
The open interest for BCH futures surged to over $400 million on Monday from just $75 million the previous week. Most of the trading interest came from the Binance crypto exchange, where traders opened $240 million worth of BCH long or short positions.
Rising open interest indicates either new money flowing into the market or existing participants increasing their allocation. This metric can be used to determine market sentiment and the strength behind price trends.
The sudden trading interest in BCH can be attributed to a network upgrade that improved security and privacy, plans for a scaling system called “CashTokens,” and the launch of EDX Markets, a new exchange that supports BCH along with Bitcoin, Ether, and Litecoin.
- Hut 8 gets $50M credit from Coinbase.
- Bitcoin investment sentiment turned bullish after the largest weekly fund inflow in a year.
- Bitcoin is not considered money and therefore not subject to interest rate regulations according to a South Korean court ruling.
The introduction of smaller transaction sizes and smart contracts functionality has allowed Bitcoin Cash-based applications to offer recurring payments, derivatives trading, crowdfunding opportunities, and other uses to Bitcoin Cash users.
Retail trader attention has been drawn to the sudden price move, with social discussions about the token rising to their highest in three years and trading volumes hitting a record this year.
Edited by Parikshit Mishra.
