Bitcoin Cash (BCH) has enjoyed a 4.5% spike in the last 24 hours, hitting a high of $248 before retracing its steps. This jump follows misleading claims about the adoption of BlackRock’s Bitcoin ETF, which generated a brief price increase in BCH. Despite the pullback, BCH is still up 4.5% over the previous week and 8% over the last 30 days. In this post, we will look at the events and causes that led to Bitcoin Cash’s recent price surge, as well as present a technical and fundamental analysis of the cryptocurrency.

The Expectation of Bitcoin ETF Approval

One of the main reasons behind Bitcoin Cash’s positive performance in recent months is the market’s increasing expectation of the approval of Bitcoin ETFs. This anticipation has had a positive impact on BCH’s price, as the altcoin is likely to benefit from any positive developments in the ETF space. For several months now, BCH’s 30-day exponential moving average has been consistently above its 200-day average, indicating a bullish trend. The recent surge in BCH’s price further supports this trend.

The Impact of ETF Approval

While the rumours of Bitcoin ETF approval were untrue, the significant price movements of both BTC and BCH in response to these rumours highlight the potential impact of ETF acceptance. The approval of Bitcoin ETFs would be a game-changer for both cryptocurrencies, and there are positive signs that such approval may be on the horizon. In August, Grayscale won a lawsuit that required the SEC to reopen its review process for the asset manager’s Bitcoin ETF application. Additionally, the SEC’s decision not to appeal this ruling further boosts the odds for the approval of Grayscale’s Bitcoin Trust (GBTC) ETF conversion.

Bitcoin Cash’s Future Outlook

Based on the assumption that Bitcoin ETFs will eventually be approved, BCH has the potential for significant price appreciation. If a Bitcoin ETF is approved, BCH could experience a surge to $300 in the days following the approval, with the possibility of reaching $500 in the first few months of the following year. However, it is important to note that investing in cryptocurrencies carries risks, and the market is subject to volatility.

Conclusion

The current increase in the price of Bitcoin Cash can be related to the market’s increased expectation of Bitcoin ETF approval. While the ETF approval rumours were incorrect, the impact on BCH’s price shows the potential for massive price growth if a Bitcoin ETF is authorized.