Bitcoin Cash Surges 29% on High-Beta Move
Bitcoin Cash (BCH) saw a huge surge on Friday, jumping 29.41% in a single day to trade at $288.53. This massive increase makes it the largest single-day gain of any major cryptocurrency in this rally.
The catalyst for this move came from outside the crypto market entirely. A policy shift from the US Treasury lit up risk assets across the board, giving high-beta names like BCH room to run harder than the rest of the market.
Analysts tracking the move reached the same conclusion: that the increase was a result of Bitcoin Cash's relationship with its parent asset, Bitcoin (BTC). As a high-beta derivative of Bitcoin, BCH amplifies the moves of BTC rather than generating its own.
The absence of any significant news or updates from Bitcoin Cash itself is what makes this move so notable. With no protocol upgrades, partnership deals, or regulatory news to speak of, the explanation for this surge lies in its relationship to something else: Bitcoin.