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.