finbold.com
Bitcoin Cash ($BCH) has registered massive gains in the last few days, carving a 58% green candle on March 2. Meanwhile, the network’s hashrate surged to an all-time high record, which can fuel a continuation.
Notably, Bitcoin Cash has a $9.40 billion market cap – 130 times lower than the $1.20 trillion Bitcoin ($BTC). Both originated from the same chain, created by Satoshi Nakamoto, and followed different paths in 2017 during the blocksize wars.
As of writing, $BCH trades at $479, while $BTC is at $61,840. This evidences the huge gap between them despite having the same economic fundamentals. Interestingly, Bitcoin Cash is rallying 78.5% in the weekly candle, moving from $268.
The recent surge is a continuation of the 185% gains observed in the two final weeks of July 2023. In particular, $BCH broke from the 50-week exponential moving average (EMA), ranging slightly above the EMA since then.
Now, Bitcoin Cash tests a multi-year resistance and previous support in 2021. Breaking out from this zone could drive $BCH’s price to last cycle’s highs at $1,642.5, for 240% gains.
Bitcoin Cash hashrate seeks an all-time high
In the meantime, cryptocurrency miners appear to have turned their mining equipment to the Bitcoin Cash network. The average hashrate is 8.01 EH/s on March 3, a 102.5% surge in the last 24 hours. This data is from BitInfoCharts.
Interestingly, this value nears $BCH’s hashrate all-time high of August 23, 2017, amid the chain split. Bitcoin Cash was trading at around $700 and reached a price all-time high of $4,300 a few months later.
Essentially, a network’s hashrate is an important metric for the fundamental analysis of proof-of-work cryptocurrencies. The hashrate plays a significant role in blockchain security and highlights players’ interest in profiting from and supporting a given network.
Moreover, the recent surge demonstrates Bitcoin Cash’s resilience and ability to continue to attract capital despite the challenges. Differently from $BTC’s mostly speculative demand, $BCH thrives as an efficient medium of exchange and a more scalable version of the leading cryptocurrency.
The $BCH community is dedicated to increasing awareness and adoption of Bitcoin as a worldwide electronic cash system. Recently, developers have also launched CashTokens, joining the DeFi and Web3 movement that became popular in the market.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.