bitcoin cash BCH/USD The stock was trading 8.1% higher on Monday afternoon at $355.45 as a result of a surge in inflows into the stock. Bitcoin and Ethereum Last week's exchange traded funds (ETFs). The rally was driven by a shift in U.S. political dynamics in favor of cryptocurrencies, with Bitcoin and Ethereum ETFs accumulating a total of $407 million in new inflows.
what's happening: The turning point came after the US vice presidential debate, which triggered a shift in polls towards the Republican Party, which is seen as more supportive of cryptocurrencies.
Analysts suggest that this political backdrop, rather than traditional economic factors, played a central role in attracting large inflows, particularly from US-based investors. As Bitcoin and Ethereum rose, so did Bitcoin Cash, a prominent Bitcoin derivative.
Created in 2017 as a hard fork of Bitcoin to address scalability issues, Bitcoin Cash has long benefited from a period of increased interest in its parent cryptocurrency. As Bitcoin received a massive $419 million inflow and its price skyrocketed, Bitcoin Cash followed suit and benefited from the so-called “Bitcoin effect.”
Related article: Oil prices drop 2% as OPEC forecast cuts, Iranian production rises: Analyst says Prime Minister Netanyahu may doubt US commitment to 'restricting Iranian exports'
Investors looking to capitalize on Bitcoin's bullish momentum are looking to Bitcoin as a cheaper alternative that still retains historical ties to Bitcoin's original vision as a decentralized peer-to-peer electronic cash system. We often focus on cache.
Why this is important: Wider inflows into crypto ETFs iShares Bitcoin Trust ibit and Fidelity Wise Origin Bitcoin Fund FBTCwhich has also spread to the altcoin market. With all eyes on Bitcoin's performance, Bitcoin Cash has emerged as an attractive option for those looking to diversify their holdings while remaining within the Bitcoin ecosystem.
Compared to Bitcoin, the appeal of Bitcoin Cash's lower transaction fees and faster block times can further increase its appeal during periods of market excitement.
A surge in blockchain equity ETFs led to weekly inflows of $34 million, the highest this year, further increasing the bullish mood across the cryptocurrency sector.
Also read:
• Will Mark Cuban replace Gary Gensler under Harris? “I'd be happy to do an interview if asked,'' former Mavs owner says.
Photo: Icons8_team (from Pixabay)
Market news and data powered by Benzinga API
© 2024 Benzinga.com. Benzinga does not provide investment advice. Unauthorized reproduction is prohibited.
