Earlier today, on October 29, the price of Bitcoin Cash surged by over 20 percent within a 24-hour span. Several major cryptocurrencies such as Ethereum’s native currency Ether also demonstrated an increase in their values, as the price of Ether rose by another six percent.
Bitcoin Cash Records a Significant Daily Increase in Price
For many months since its launch in August, Bitcoin Cash has substantially declined in value, dipping below $320 at one point. Within the past 24 hours, the price of Bitcoin Cash (BCH) increased from $400 to $522, demonstrating a staggering $122 daily gain. The BCH price has endured a slight correction since reaching its monthly peak and has stabilized at around $460.
In analyzing the factors for the increase in the value of Bitcoin Cash, it is important to acknowledge some of its major exchange markets. Currently, more than 50 percent of global BCH trades are concentrated in one exchange, South Korea’s largest cryptocurrency exchange Bithumb.
According to various cryptocurrency market data providers including CoinMarketCap, three largest exchange markets in the BCH market are Bithumb, Coinone, and Korbit, which are all based in South Korea. To put it simply, at the time of reporting, the South Korean cryptocurrency market has accounted for over 65 percent of global BCH trades.
Bithumb has been an important factor in the rapid growth rate of Bitcoin Cash. As the second largest cryptocurrency exchange in the world behind Bitfinex, the integration of Bithumb provides significant liquidity to a cryptocurrency. The importance of the integration of Bithumb has recently been demonstrated by Qtum. Within five days of integrating Qtum, Bithumb became the largest Qtum exchange market with around 51 percent in market share.
“In less than five days since the integration of Qtum, Bithumb evolved into the largest Qtum exchange in the global market. In the upcoming years, Bithumb will continue to focus on providing support for leading cryptocurrencies with innovative vision and competition,” said Bithumb.
Hence, the increase in demand for Bitcoin Cash from the South Korean market and specifically by Bithumb users, traders, and investors has been a driving factor in the upward momentum of BItcoin Cash.
Ethereum Finally Enters the $300 Region
After struggling to rebound from a previous major correction on October 4, the price of Ether has finally recovered beyond the $300 mark. In the past 24 hours, the price of Ether increased from $297 to $307, by around $20.
Usually, the price trend of Ether tends to correlate with that of bitcoin. However, today, Ether recorded a major daily gain while the price of bitcoin struggled to rebound back to $5,900.
Earlier this week, CCN reported that Blockchain, the world’s most widely utilized mobile bitcoin wallet, integrated Ethereum to allow its users to send, receive, and store Ether.
“Adoption of Ethereum is an important indicator for the mid and long-term price trend of Ether. Earlier this week, Blockchain, the second most popular bitcoin wallet behind Coinbase, announced the integration of Ethereum into its mobile wallet, the most widely utilized bitcoin mobile wallet in the market.”
In the mid-term, the growing adoption of cryptocurrency platforms like Blockchain and the strong performance of Ether in major regions such as South Korea will allow the cryptocurrency to surge in value.
Featured image from Shutterstock.
Last modified: May 21, 2020 9:10 AM UTC