Bitcoin cash (BCH) cryptocurrency has increased more than 100% in the last 7 days.
At the time of this publication, each BCH unit is trading at USD 221. Last Monday, the price of this Bitcoin Cash was USD 106.
The catalyst for the bullish momentum leading BCH to double in price is being listed among the coins to be traded by the EDX Markets exchange. This is a new U.S.-based platform that is backed by Wall Street giants and seeks to comply with regulations set by the Securities and Exchange Commission (SEC).
Among the firms backing the EDX Markets exchange are Charles Schwab, Citadel Securities and Fidelity Digital Assets. In addition, EDX recently completed a round of financing that included companies such as GSR Markets and Miami International Holdings.
According to the words of Jamil Nazarali, CEO of EDX, the goal of the exchange is to “bring the best of traditional finance to the cryptocurrency markets.”
Unlike other cryptocurrency exchanges that list dozens or hundreds of digital assets, EDX limits itself to four: bitcoin (BTC), ether (ETH), litecoin (LTC) and bitcoin cash (BCH). Regarding the aforementioned cryptocurrencies, the SEC has stated that they are not unregistered securities, unlike other currencies.
Although the launch of EDX has been beneficial for all cryptocurrencies listed on the platform, BCH saw the biggest gain. BTC was up 15%, ETH 10% and LTC 16%.
A determining factor in this phenomenon could be the inherent volatility of bitcoin cash, due to its lower market capitalization. When comparing BCH to larger capitalization cryptocurrencies, such as bitcoin and ether, it is clear that price fluctuations can be more pronounced.
Simply put, cryptocurrencies with smaller market capitalization are more susceptible to large price swings. 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, creating a sudden demand that boosted its price.
What is bitcoin cash?
Bitcoin cash is a cryptocurrency that originated from a hard fork of the Bitcoin network in 2017. This split was the result of a disagreement in Bitcoin on how to solve the scalability issues the network was facing.
Although this altcoin (non-bitcoin cryptocurrency) shares some technical characteristics and transaction history with the real Bitcoin up to the time of the hard fork, it is a completely independent currency with its own network and consensus rules.
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