Why does Bitcoin Cash rise faster than Bitcoin?

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Last Updated on 6 November 2023 by CryptoTips.eu

Bitcoin Cash rose the fastest after the judge’s ruling in the case between Grayscale and the SEC this week. In fact, Bitcoin Cash has secured a good 70% in the past three months. Bitcoin itself (i.e. the original) fell about 5% over the same period, from $28k to about $25.7k at the time of writing. Why is that? We try to explain

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Mistaken identity

First, there are many new traders every year. Since Bitcoin is priced at \$26k and Bitcoin Cash is trading at just \$200, there are many who think that Bitcoin Cash is just cheap Bitcoin. They don’t read anything about the hard fork of 2018, but just buy Bitcoin Cash instead of Bitcoin. A case of mistaken identity.

It sounds very strange to those who know crypto, but it happens much more often than you think.

The same story usually plays out with Ethereum and Ethereum Classic. Whenever we are in a crypto bull run, Ethereum Classic, which trades at a much lower price than the original Ethereum, rises by a much greater percentage as newbie traders make the same mistake and just purchase the seemingly ‘cheaper’ digital currency.

EDX Markets

Second, there is EDX markets. This is a new crypto platform that was founded some months ago by a few companies on Wall Street (Fidelity, Charles Schwab and Citadel Securities) who want to offer crypto trading to their clients. EDX markets only offers four coins, namely Ethereum, Bitcoin, Litecoin and, you guessed it, Bitcoin Cash.

In this way, Bitcoin Cash benefits from the attention that would actually go to Bitcoin.

Now that you know that, you can probably understand better why Bitcoin Cash has risen by a whopping 110% since the beginning of this year while Bitcoin only gained 55% over the same period.

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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