Bitcoin Cash (BCH) surged to a seven-month high above $520, gaining 15% over the past week and 29% in the last month. This rise outperformed the broader crypto market, which declined by 2.8% during the same period.
BCH, a Bitcoin fork with larger block size and an independent blockchain, has become the most traded fork among over 100 Bitcoin derivatives. Over the past 30 days, it has significantly outpaced Bitcoin (BTC), which rose only 1.4% and declined 1.2% on the day of BCH’s surge.
Analysts attribute the rally largely to large-scale investors, known as whales, rather than retail traders. Illia Otychenko, Lead Analyst at CEX.IO, noted the average BCH transaction volume jumped from $10,000 in April to $75,000 in late June. Transactions exceeding 1,000 BCH spiked twentyfold in June, while the total number of transactions remained steady, indicating whale-driven buying pressure.
Despite recent gains, Otychenko suggests BCH may be entering a consolidation phase. Trading volume and whale activity have decreased by nearly 90%, similar to patterns seen in mid-May when whale participation waned and price growth stalled.
Russell Shor, Senior Market Analyst at Tradu, links BCH’s rally to a risk-on market mood following eased US-China trade tensions, bullish technical indicators, increased institutional buying, and optimism about potential Federal Reserve rate cuts. He warned that BCH’s advance past $500 could lead to a test of $600 if conditions persist, though market volatility and regulatory factors remain risks.
Shor recommends monitoring the $460–$470 price range to gauge the sustainability of the rally.