Bitcoin Cash’s Bullish Reversal Pushes Crypto Market Cap to $400 Billion
Bitcoin cash (BCH) added about $5 billion to its market cap on Thursday, extending its recovery to three days on sellers’ fatigue.
BCH/USD Price Levels
The alternative to bitcoin rose by as much as 40% on Thursday, hitting a session high of $1,343.68. That would have marked the highest settlement in more than a week.
At the time of writing, bitcoin cash was up nearly 30% at $1,246.48 for a market cap of $21.1 billion. When the trading session began, BCH was worth $16.3 billion.
With the latest gain, BCH has rallied more than 70% from its Tuesday low of less than $800. The latest rally attempt has been accompanied by an upsurge in daily trade volume, with transactions climbing 150% over a 24-hour period.
The market turned over nearly $2.2 billion worth of BCH on Thursday, with the OKEx exchange processing more than half of that amount. South Korea’s Upbit and Bithub also accounted for a substantial share of daily transaction volume.
Bitcoin cash continues to hold the no. 4 spot in terms of overall market cap. The digital currency spent much of its early days trading in obscurity, as investors struggled to quantify its true worth. It took a failed launch of SegWit2x in November to drive up the value of bitcoin cash.
Cryptos Show Poise Despite Stock Market Turmoil
Cryptocurrencies as a whole regained some of their momentum Thursday, with the total market capitalization reaching a high of $403 billion. The digital asset class largely staved off broader tumult in the financial markets following another massive retreat in U.S. stocks. The Dow’s 1,000-point plunge will almost assuredly trigger a renewed selloff in global markets.
Traders are also benefiting from assurance that powerful U.S. regulators won’t throw the book at digital currencies. In prepared testimony before the Senate Banking Committee Tuesday, the head of the Commodity Futures Trading Commission (CFTC) struck a decidedly optimistic tone about the market’s future. Meanwhile, his counterpart at the Securities and Exchange Commission (SEC) focused largely on risks associated with ICO fraud and misrepresentation.
How U.S. regulators approach cryptocurrency is a principal concern for market participants, who believe that Washington’s governance approach will serve as a guide for other nations. Crypto regulations vary widely across jurisdictions, from an all-out ban in China to full legalization in neighboring Japan.
In the United States, crypto exchanges remain highly active, but ICOs appear to have cooled following the SEC’s warning over security tokens. The SEC reiterated that warning earlier this week, reminding startup companies that labeling your token as a “utility’ is insufficient in sidestepping federal securities laws.
Bitcoin cash is one of four digital currencies currently offered by the U.S.-headquartered Coinbase. The coin launched on GDAX in December, but was quickly taken down over allegations of insider trading at Coinbase. Support for BCH resumed shortly thereafter.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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