The altcoin, which was created in 2017 as a fork of the original bitcoin, reached over $233 yesterday, according to CoinDesk figures.
Within a span of fewer than 24 hours, the cryptocurrency witnessed a surge of over 9%, as indicated by additional CoinDesk data.
Although the digital asset experienced a slight pullback following this upward movement, it managed to maintain most of its recent gains, currently trading above $227.
A number of analysts have shared their perspectives on these price fluctuations.
“As compared to Bitcoin, altcoins such as Bitcoin Cash tend to exhibit greater volatility due to their smaller market cap,” said Joe DiPasquale, CEO of cryptocurrency hedge fund manager BitBull Capital.
“Historically, Bitcoin Cash has demonstrated higher beta on both positive and negative sides when compared to Bitcoin,” he added.
Marc Bernegger, a member of the advisory board of fintech firm GenTwo, also provided his insights.
“The approval of a Bitcoin ETF would be a significant milestone for the cryptocurrency market. If investors believed that a Bitcoin Spot ETF was approved, it could have resulted in increased optimism for the entire crypto market, including Bitcoin Cash, as it implies greater institutional interest and legitimacy for cryptocurrencies,” he stated.
“I believe that Bitcoin Cash increased in value simply because traders turned to it following yesterday’s fake Bitcoin Spot ETF news,” Bernegger added.
Tim Enneking, managing director of Digital Capital Management, further discussed these recent developments.
He described Bitcoin Cash as “distinct from BTC but struggling to maintain its own raison d’être.”
“In reference to this recent movement, I would say that it is entirely influenced by what BTC is doing,” he concluded.
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes only and does not constitute investment advice. You could potentially lose all of your capital.