The crypto markets have been anxiously looking towards the next bull run, and the time seems to have arrived earlier than many anticipated. April 1st saw the slight upwards movements but nothing out of blue, as the crypto market has been pushing for green since the start of the year. But, on 2nd April most of the cryptocurrencies got above their key resistance point and most importantly they maintained their gain. The market gained over $30 billion in just 24 hours.
Its quite common in the crypto space that Bitcoin drives the sentiment of the market and usually the market movement is governed by Bitcoin’s up and down. However, the situation is different this time around as Bitcoin Cash has not just surpassed the growth rate of bitcoin in the 24-hour price chart, but its rise is beyond explainable. BCH rose a massive 50% overnight to add $100 to its price.
Bitcoin cash was trading at around $180 yesterday and it is currently rallying around the price point of $257. Only a day before the upper key resistance point of BCH stood at $180 and the next key resistance point was being seen at $200. However, the coin has surpassed all the expectations and price predictions leaving everyone behind.
Probable Causes for the Rise
It is being estimated that the phenomenal price rise is due to the strong public sentiment towards the BCH token and recently it is being speculated that there has been a spike in the Bitcoin Cash and Litecoin futures contracts. The investors are spending hefty sums on these future contracts betting big money.
Another factor that might have played a significant role in BCH favor could be its SLP tokens. The BCH network based SLP tokens have seen a phenomenal acceptance and use in recent times after BCH network decided to move towards becoming a complete blockchain ecosystem rather than just another token.
Roger Ver led Bitcoin Cash has shifted their focus on the development and long term use rather than immediate price hikes. Many analysts have said that the trading patterns have been responsible for BCH pump and most of the pump has come from Asian markets rather than the western counterparts.
Bloomberg has reported that the price trigger could be due to an automated software designed to execute $100 million trades across all the exchanges. The chief executive of the BCG group stated that Coinbase, Kraken, and Bitstamp were the exchanges in question.
Whatever may be the reason for such high for BCH, at least the Bitcoin Cash community is not complaining. BCH network has added a whopping $1.5 billion to its overall market capitalization in the last 36 hours.