The hard forks of Bitcoin, Bitcoin Cash, and Bitcoin SV which diverged from the main chain, have gained the spotlight in recent times. The BCH and BSV prices have soared extremely high in the past seven days; they have outperformed Bitcoin itself.
The prices continue to soar high despite the markets displaying a consolidated trend with minor price variations. So the question now raises what triggered the rally, and what does the upswing signify?
The markets had plunged hard as the SEC charged Binance and Coinbase over irregularities in following US rules and regulations. Further, with the arrival of industry giants like BlackRock, Invesco, WisdonTree, etc., the price triggered a massive upswing. Bitcoin Cash (BCH) has been among the top 5 cryptos in the top gainer’s list, while Bitcoin SV also entered the list.
With the emergence of BCH, BSV, ETC, and VET, the founder of Boxmining, Michael GU speculated on the emergence of China back into the crypto space.
China’s historical relationship with cryptos has been pretty complex, including recurrent bans that have always impacted the entire crypto market. However, in recent times, China has softened its approach to crypto. Recently, Beijing issued a whitepaper ‘Web3 Innovation and Development White Paper (2023) that advocated Web3 technology as a pivotal component of the future growth of the internet.
However, China also shares a History of being against cryptos. The very first attempt by the People’s Bank of China (PBC) was in 2013 when it prohibited financial institutions from transacting in virtual currencies. Further, in 2017, officials increased sanctions on cryptos, specifically on ICOs. Later in 2021, China undertook the most severe measures and banned crypto mining. The markets dropped over 50% with the announcement.
Despite the ban, activities have not been completely halted in many sectors, as per some reports. If China is thinking of lifting the ban or easing its stand on cryptos, the global markets could be deeply impacted, stimulating global demand and boosting prices. However, everything is still surrounded by assumptions and interpretations at the moment.
Hence, the rise in the Bitcoin & Ethereum hard fork may seem organic but as the analyst says, some major events may occur in the coming days, lifting the markets beyond the bearish influence.