The cryptocurrency market cap has experienced a marginal surge in the last 24 hours with over $12bbillion and this is as a result of most altcoins trading in the green territory. Bitcoin Cash and Ripple’s XRP have been the gainers with gains of over 20%. This has seen Bitcoin shed some market dominance points to stand at 52.2%.
The BCH current interest is not about the Bitmain IPO but has more to with the mining firm healthy balance sheet. This is what the investors are looking at and has a lot to do with institutions and other high profile investors coming onboard Bitcoin Cash before close of Q4.
The last two month have seen the price of Bitcoin stabilize and this has cascaded down to the altcoins and is set to hold much longer. However, for Bitcoin Cash a lot has been happening behind the scenes that have led to the positive price spike. The increased media presence and development updates have had a positive impact on the coin.
Bitmain Initial Public Offering (IPO) Effect on Bitcoin Cash
It is no doubt that the Bitmain’s Hong Kong IPO application filing has pushed the BCH price a new heights. This has seen the BCH shares soar to new high and the price movement from $440 to $541 appear to hold steadily in the short term. The firm is a mining leader in the market and its role in the BCH price surge is clear according to one e-Toro analyst, Mati Greenspan:
“This spike was definitely caused by Bitmain’s IPO filing.”
Speculations have been rife since the leaking of Bitmain investor deck at the beginning of August. The leakage showed details of Bitmain holdings across various crypto assets with BCH accounting for over 1million which translates to 6% of the coin’s total supply. However, the holdings have ushered in a controversy with investors attributing it to the miner IPO strategy to liquidate their BCH holdings.
“Bitmain holding 1M+ BCH is a very powerful statement that they have skin in the game and put their money where their mouth is. It’s a good and calculated move, and it’s not wise to underestimate them.”
While filing the IPO, Bitmain has stated that:
“We have focused on developing mining hardware with different algorithms covering major cryptocurrencies, including bitcoin, Bitcoin Cash, ether, Litecoin, Dash and Zcash, which makes us one of the few companies offering mining solutions for various cryptocurrencies.”
Increased Investor Confidence on Bitcoin Cash
The steady growth of BCH has been associated with increased investor confidence after revelation of Bitmain holdings in the asset. According to Marouane Garcon at Amulet:
“It has been no secret that Bitmain holds massive amounts of BCH, but now that they are going public they are going to fill their already immense treasure chest with more money, and I’m confident a good chunk of it will go towards the development of BCH.”
There are speculations that BCH is headed for Gemini listing and this has headed invert interest on the coin given that the US based exchange is fully regulated and seen as a stepping stone for the coin visibility not only in the US but globally. The coin has been lagging behind in mass adoption and the future looks bright.
Bitcoin Cash Price Outlook
After a successful Bitcoin Cash network stress test, the price of BCH grew by 14% and has been able to hold on strongly in a bearish crypto space and the current surge is a clear indication that the coin woes are headed to a stop. The increased confidence on the asset has seen BCH volumes surge within24 hours.
The Bitcoin Cash (BCH) price stood at $526.17 with gains against the dollar of 20.13% at reporting time. The Bitmain news appears to have overshadowed the anticipated hardfork which a section of the community is opposed to. A lot of support has been coming from its rich exchange portfolio with BitForex handling 28.93%of its volumes in the last 24 hour session that has seen the BCH/USDT pair trending.