After struggling to find a market since its launch in 2017, Bitcoin Cash has taken the industry by storm this month. Reportedly, Bitcoin Cash is about 173% up since the start of June, jumping from $113 to $309.
Bitcoin Cash was created following a dispute between Bitcoin’s users and developers over different visions for the future of the blockchain. In 2017, a group that wanted Bitcoin to focus more on consumer payments split, or forked, the blockchain to create Bitcoin Cash.
Analysts say that like many other coins and tokens which have surged in price since the biggest digital asset experienced a run, so far Bitcoin Cash has been doing the best.
Data shows Bitcoin Cash open interest, or the number of unsettled futures contracts, surged to over $400 million on Monday from just $75 million the week prior. Rising open interest either means that new money is flowing into the market or existing participants are increasing their allocation. The metric can be used as an indicator to determine market sentiment and the strength behind price trends.
According to recent data from Into the Block, an on-chain analytics firm, Bitcoin Cash has soared over 70% just within a week. Notably, the inclusion of Bitcoin Cash on a Citadel Securities-backed crypto exchange and a network upgrade is expected to have a significant part in the asset’s current performance.
In particular, June 28 has witnessed the highest volume of Bitcoin Cash transacted in a year. Analysts suggest that the net total of the transaction was recorded to be $750 million.
Simultaneously, Into the Block provided another set of data highlighting the major holders trend among the investors of Bitcoin Cash. Calling it “Balance by Time Held” indicator, the analysts say that the trend has some very interesting patterns.
Reportedly, the new or the short term Bitcoin cash holders are the one majorly leading this trail. Data suggests that in the past 30 days, the holders who have held Bitcoin Cash for less than a month has marked a spectacular increase of 33%.
While the crypto market witnessed significant movements in the past weeks due to the regulatory crackdown on crypto entities in the United States. As the Securities and Exchange Commission (SEC) claims all major assets to be securities except Bitcoin, the classification of Bitcoin Cash still remains in a grey area.
To this, some argue that Bitcoin Cash and Litecoin are both Bitcoin forks i.e. new cryptocurrencies that emerged from the asset’s original code. This leads to further implication that they are likely to have the same status in the eyes of regulators.
In the past weeks, Bitcoin Cash prices have literally doubled, becoming one of the top-performing tokens above a $1 billion market capitalization. Simultaneously, Bitcoin (BTC) and ether (ETH) added 13% and 8% respectively in this period. As of writing, Bitcoin Cash is trading at $309.47, a 22% increase over the past day and 59% increase over the past 5 days.