Summary

  • Bitcoin Cash surged by as much as 30% this week following the announcement from CME Group about launching BCH and Uniswap futures on October 19.
  • Bitcoin SV, a result of the 2018 "Hash War" that split from Bitcoin Cash, also experienced a rise of about 20%, reaching an annual peak near $21.
  • Meanwhile, Bitcoin itself fell back towards $84,000 on Wednesday.

After reaching a seven-month high of approximately $87,250 earlier this week, Bitcoin saw a decline on Wednesday, moving closer to $84,000.

This downturn coincided with a shift in trader interest towards two unexpected beneficiaries: Bitcoin Cash and Bitcoin SV, which have gained traction despite a general market slowdown.

Myriad: Predict Bitcoin's Future Highs Make your prediction here.

Bitcoin Cash was created in August 2017 after a disagreement over block size, prioritizing faster and cheaper transactions over the pure store-of-value aspect. Bitcoin SV emerged from Bitcoin Cash in November 2018 during the "Hash War," where Craig Wright's faction advocated for larger blocks and a return to Bitcoin's foundational principles.

Since their inception, both networks have traded at significantly lower prices and volumes than Bitcoin, with occasional spikes triggered by new developments.

This week, Bitcoin Cash's surge was largely attributed to CME Group's announcement on Monday regarding the launch of Bitcoin Cash futures on October 19, pending regulatory approval. This move positions Bitcoin Cash, trading as BCH, as the tenth single-asset crypto contract on the exchange, while Uniswap will be the eleventh.

The standard contracts will represent 250 BCH, with micro contracts covering 25 BCH for smaller investors. Giovanni Vicioso, CME's global head of cryptocurrency products, stated that these contracts will provide institutions with "broader, regulated tools to navigate evolving digital asset related price risk."

Following the announcement, Bitcoin Cash jumped up to 30%, surpassing $340 and briefly reaching $358 before stabilizing. Grayscale further fueled interest by filing to convert its Bitcoin Cash Trust into a spot ETF for listing on NYSE Arca, enhancing BCH's narrative of institutional adoption alongside the futures announcement. This rally pushed BCH’s weekly gain to over 50% at one point.

Bitcoin Cash price data. Image: Tradingview

Bitcoin SV, trading as BSV, also benefited from the trend, gaining around 20% alongside BCH and nearing the $21 mark, an annual high.

Bitcoin SV price data. Image: Tradingview

The increase in open interest for BSV derivatives indicates traders are entering new positions rather than merely covering existing shorts.

However, it is important to note that this pattern is familiar: the forks of Bitcoin often experience rapid spikes in price before retracing their gains. Smaller market capitalizations typically lead to increased volatility and more pronounced price movements.

On Tuesday, spot Bitcoin ETFs attracted $715 million, marking a significant inflow day even as Bitcoin's price stagnated. The CME's Bitcoin Cash and Uniswap contracts are set to launch on October 19, pending regulatory review.

Disclaimer

The opinions expressed by the author are intended for informational purposes only and do not constitute financial, investment, or other advice.

Daily Debrief Newsletter

Stay updated every day with the latest news stories, plus original features, podcasts, videos, and more.