Inspenet, June 27, 2023.
This week the cryptocurrency bitcoin cash (BCH) has experienced an increase of more than 100% and so far, each unit has a value of USD 221 , while a week ago its price was USD 106.
What has led BCH to double in price is due to its inclusion in the coins that will be traded on the EDX Markets exchange. This new exchange based in the United States has the support of important Wall Street players and seeks to comply with the regulations established by the Securities and Exchange Commission (SEC).
Firms backing EDX Markets include Charles Schwab, Citadel Securities and Fidelity Digital Assets. Additionally, EDX recently completed a financing round that included companies such as GSR Markets and Miami International Holdings.
According to statements by Jamil Nazarali, CEO of EDX, the exchange’s goal is to “incorporate the highlights of traditional finance into the cryptocurrency markets.”
Unlike other cryptocurrency exchanges that offer a wide variety of digital assets, EDX focuses on four: bitcoin (BTC), ether (ETH), litecoin (LTC), and bitcoin cash (BCH). The SEC has stated that these cryptocurrencies are not considered unregistered securities, unlike other digital currencies.
Although the launch of EDX has been beneficial for all the cryptocurrencies included in the platform, BCH has seen the biggest increase. BTC rose 15%, ETH 10%, and LTC 16%.
An important factor that could explain this phenomenon is the intrinsic volatility of bitcoin cash, due to its lower market capitalization. When comparing BCH to larger-cap cryptocurrencies such as bitcoin and ether, it becomes clear that price variations can be more significant.
In simple terms, cryptocurrencies with a lower market capitalization are more susceptible to large price fluctuations. This is because a significantly smaller amount of capital can have a much larger impact on the price, either up or down. In this case, the listing of BCH on an exchange like EDX may have piqued the interest of new investors, generating a sudden demand that boosted its price.
More about bitcoin cash
Bitcoin cash is a cryptocurrency that emerged from a hard fork of the Bitcoin network in 2017. This separation came about due to a disagreement in the Bitcoin community on how to address the scalability challenges facing the network.
Despite the fact that this altcoin shares some technical characteristics and a similar transaction history to Bitcoin up to the time of the fork, it is a completely independent coin with its own network and set of consensus rules.
Source and photo: https://www.criptonoticias.com/mercados/bitcoin-cash-sube-100-listado-exchange-respaldado-gigantes-wall-street/
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