Bitcoin Cash Leads Altcoin Market With 16% Gain

Altcoins offer investors and traders an alternative to the big cryptocurrencies within the market. Since the beginning of this week, these big cryptocurrencies such as Bitcoin and Ethereum have continued to soar, dragging the majority of the market with them. Bitcoin Cash, a direct fork of Bitcoinis enjoying success after today’s 3% increase in total market capitalization.

According to CoinGecko, the coin has grown by almost 15%, making it the coin with the highest gains in the current market environment.

Excellent market conditions stimulate traders’ interest

The connection between traditional and cryptocurrency markets cannot be underestimated. Major market indices such as Dow Jones and the S&P 500 shows a high correlation with major crypto assets like Bitcoin. This positive correlation therefore gives the altcoin market a helping hand in situations like this.

Investors, traders and economists are keeping an eye on several G7 central bank meetings like Japan, the United States and the United Kingdom.

The most notable of these is the highly likely US Federal Reserve rate cut in September, hinted at by US Fed Chairman James Powell. This means that the Fed and other similar central banks are observing that the economy is returning to health, so it does not require measures such as raising interest rates.

Bitcoin is now trading at $69,768. Chart: Trading View

Both experts and newbies have jumped into the crypto derivatives market. According to CoinGlass, BCH’s surge has helped bring in more long-term investors, bringing new contracts to the market. Online analysts are also optimistic that BCH will continue its strong run into next month.

See more

These positive metrics leave more than enough room for the bulls to continue their ascent. Coupled with the halving event experienced by BCH last April, the coin has since become another crowd favorite for its near-consistent performance.

Bitcoin Cash: Will the Bullish Pace Continue?

The overall financial situation of the global market can be summed up in one sentence: Very optimistic. However, investors and traders in BCH should note that this bull run is an attempt to recover from months of decline.

Although the correlation between BTC and BCH is high, investors should still be cautious as this could also result in BCH following Bitcoin lower if it corrects to a more sustainable level.

And that may well be the case. The bulls, after nearly a month of steady gains, will eventually exhaust themselves. Once the bears take over the market, we could see the token settle into its current price range of around $450.

It will take another month of positive market conditions to continue this type of movement. Investors and traders should therefore watch the broader economy and the next decision of the Federal Open Market Committee, as most decisions in the financial world will depend on this metric.

Featured image from Medium, chart from TradingView

Source