Bitcoin Cash (BCH) has recently experienced substantial growth, with its value soaring by 58% on March 2nd, bolstered by a hashrate surge indicating mining power at historic highs. Despite sharing the same origins with Bitcoin (BTC), BCH’s market capitalization stands at $9.40 billion, which is significantly less than Bitcoin’s $1.20 trillion. The diverging trajectories of these cryptocurrencies stem from the block size debate that triggered a split in 2017.
Comparing Market Dynamics
Currently, Bitcoin Cash‘s trading price is $479, contrasted with Bitcoin’s $62,405, highlighting the substantial valuation gap between the two despite their common economic roots. BCH has built up momentum with a 78.5% surge in its weekly performance, escalating from $268. This rally is a continuation of a 185% increase from the latter half of July 2023. Bitcoin Cash is not only hovering above the Exponential Moving Average (EMA) but is also challenging a multi-year resistance level. If surpassed, this could potentially lead to a price spike of up to $1,642.5, marking a 240% increase and the peak of the last cycle.
Shift in Mining Preferences
Mining activity on the Bitcoin Cash network is witnessing a notable shift, with an average hashrate jump of 102.5% to 8.01 EH/s as of March 3rd, drawing close to the all-time high seen during the 2017 network split. Back then, BCH was valued at $700, eventually reaching an all-time high of $4,300 months later. Hashrate is a key indicator of a network’s security and the engagement level of its participants.
This increase in mining power underpins Bitcoin Cash’s durability and its capacity to continuously draw investment, despite facing challenges. In contrast to Bitcoin’s predominantly speculative interest, Bitcoin Cash has been carving out a niche as an efficient medium of exchange, outstripping Bitcoin in scalability.
The Bitcoin Cash community is actively working towards promoting the cryptocurrency as a global electronic cash system. Aligning with current market trends, developers are venturing into DeFi and Web3 by introducing CashTokens, aiming to bolster the currency’s practical use cases and adoption.