Bitcoin Cash (BCH) and Bitcoin SV (BSV) Rally with Double-Digit Gains: What’s Driving the Momentum?

Date: Thu, Nov 21, 2024, 05:18 AM GMT

The cryptocurrency market is shining, with Bitcoin (BTC) hitting a new all-time high of $97,781. This surge in Bitcoin's price follows the recent launch of spot Bitcoin ETF options in the U.S., specifically for BlackRock’s iShares Bitcoin Trust (IBIT). On its debut day on the Nasdaq, a whopping $1.9 billion worth of options contracts were traded.

However, while Bitcoin's rally is grabbing headlines, the altcoin market is seeing a different trend. Many altcoins are facing a decline, but Bitcoin Cash (BCH) and Bitcoin SV (BSV) standing out as notable exceptions. In the last 24 hours, BCH surged by 16%, while BSV saw a jump of over 10%.

Source: Coinmarketcap

What’s Driving the Momentum?

Both Bitcoin Cash and Bitcoin SV are forks of Bitcoin, created to address scalability and transaction efficiency concerns. Despite being separate projects, they still maintain a close correlation with Bitcoin's price movement. As Bitcoin continues to perform well, it’s not surprising to see these Bitcoin derivatives follow suit.

One key factor influencing BCH and BSV’s rally is Bitcoin’s growing dominance in the market. Bitcoin’s dominance—a measure of Bitcoin’s share in the total cryptocurrency market cap—has recently risen to 61.65%, marking a 0.74% increase over the past 24 hours.

Source: TradingView

This boost in Bitcoin dominance suggests that more capital is flowing into Bitcoin, which could also be benefiting assets linked to Bitcoin, like BCH and BSV.

What to Expect Ahead?

Looking at the BTC dominance chart, it seems the market may continue its bullish trend, with the next resistance level potentially around 63.50%. If Bitcoin’s dominance continues to rise, Bitcoin Cash and Bitcoin SV could see further gains, thanks to their close ties with Bitcoin. On the other hand, this dominance trend could spell more challenges for the broader altcoin market, as more capital would likely flow into Bitcoin, leaving less for other altcoins.

For altcoin investors, it’s important to keep an eye on BTC dominance levels. If it continues to rise above 63.50%, it could mean more struggles for altcoins. However, if BTC dominance starts to pull back, there could be a chance for a relief rally in the altcoin market.

Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.

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