And so, what is today the fourth cryptocurrency with the largest market capitalization, has made a jump of 12,93% to set a new annual record at $ 428,80, the highest for 7 months now, with value total of $ 7,74 billion.
As anticipated, the massive rise in Bitcoin Cash seems to be driven by a wider movement in the altcoin world. Suffice it to recall that XRP, the third digital currency by market capitalization, grew by more than 9 percent over a period of only 24 hours and which at the same time was the largest Ethereum, posted a 5,66% gain. Overall, the altcoin market added around 3,75 billion to its overall market capitalization,
Bitcoin Cash halving
In addition to the overall altcoin trend, there is at least one other reason that is pushing Bitcoin Cash quotes up: thehalving which will take place in April 2020, a month before that of Bitcoin. In retrospect, the event would reduce the daily cryptocurrency supply for miners from 12,5 BCH to 6,25 BCH, making it more scarce.
Traders may prefer to maintain or increase their share of BCH before halving, in the belief that their growing demand would end up colliding with an increasingly limited supply, generating upward pressure on prices.
We will see, however, if the price reaction is really so predictable.