Bitcoin Cash (BCH) experienced impressive gains last week, securing its position as a top gainer within the top 50 cryptocurrencies by market capitalization. This bullish performance comes amidst exciting news surrounding BCH’s potential for further growth.
A recent bill introduced in New York is a key driver behind BCH’s surge, with state agencies potentially accepting fees, fines, and taxes in the form of cryptocurrency. The inclusion of BCH, along with Litecoin, Bitcoin, and Ethereum on the list indicates growing acceptance and understanding of this cryptocurrency within the financial sector.
Last week’s rally was fueled by a significant influx of liquidity for BCH, allowing it to surpass its larger counterpart, Bitcoin. This jump was remarkable, reaching as high as 43.59% from its lowest price point to its highest during the week, with a current price tag of $346.9 at press time.
BCH’s strong performance is backed by notable on-chain metrics: whales have recently shown increased activity and large holder netflow has surged in recent days, indicating demand from these significant players. Further evidence of this surge comes from spot flows on Coinglass, which recorded a massive spike on April 12th.
The question now remains whether BCH can maintain momentum or if it will face profit-taking pressure. Long-term holders have been accumulating the cryptocurrency since early February, and their activity appears to have played a significant role in BCH’s recent rise. While skeptics argue for continued obscurity, some analysts view BCH as an attractive alternative due to its proof-of-work consensus algorithm and limited circulating supply, similar to Bitcoin.
New York’s endorsement of BCH through legislation may further fuel the momentum and could open doors for other states to follow suit. The potential for BCH ETFs down the line is a possibility to keep an eye on as the crypto landscape continues to evolve.