Bitcoin Cash, the spin-off of the world’s largest cryptocurrency, has gained more than 108% in the past seven days as investors expect the Bitcoin-based altcoin to receive the same categorization as commodities by marketers. US regulators. But one market expert told Forkast that this won’t last long.
See related article: JPMorgan starts euro payments on its blockchain platform: Bloomberg
- Bitcoin Cash was up 15% to $222.46 in the 24 hours to 2 p.m. in Hong Kong on Tuesday, according to data from CoinMarketCap. Another Bitcoin hard fork, Bitcoin SV, was also up nearly 50% last week. It is currently at US$37.23 after gaining 5% in the last 24 hours.
- Bitcoin Cash and Bitcoin SV typically trade in low volumes, said Benjamin Stani, director of business development and sales at cryptocurrency trading platform Matrixport.
- “I would say it is mostly sentiment related – both are not widely used tokens and are generally considered past cycle coins,” Stani said, clarifying that there was no fundamental upgrade in Bitcoin forks to lead to long-term growth. term.
- “The narrative I hear is that Bitcoin forks should obviously be given the same treatment as Bitcoin by the Securities and Exchange Commission, i.e. considered commodities,” Stani said. Forkast via Telegram message.
- The US SEC has been aggressively policing local crypto entities on the grounds that most cryptocurrencies could be seen as securities.
- Bitcoin Cash was created in 2017 as a hard fork of Bitcoin to increase the block size on the network and allow for faster and more affordable transactions. A hard fork is a permanent upgrade to a blockchain protocol that makes the new network incompatible with the old blocks.
- Bitcoin Cash is also among four cryptocurrencies offered on EDX Markets, the new compliance-focused crypto exchange backed by Wall Street giants like Citadel Securities, Fidelity Investments, and Charles Schwab.
- Last week, Federal Reserve Chairman Jerome Powell said that cryptocurrencies like Bitcoin have “staying power” as an asset class.
See related article: How Dubai and Hong Kong are changing the power dynamics of cryptocurrencies: Opinion