Bitcoin Cash Dominates Altcoin Market With 16% Gain

Altcoins offer investors and traders an alternative to the major cryptocurrencies in the market. Since the beginning of this week, these major cryptocurrencies like Bitcoin and Ethereum have continued to surge, taking the majority of the market with them. Bitcoin Cash, a direct fork of Bitcoinis enjoying success after its total market capitalization increased by 3% today.

According to CoinGecko, the coin is up nearly 15%, making it the biggest gainer in the current market environment.

Exceptional market conditions boost traders’ interest

The connection between traditional and crypto markets cannot be underestimated. Major stock indices like the Dow Jones and the S&P 500 show a strong correlation with major crypto assets like Bitcoin. This positive correlation thus gives a helping hand to the altcoin market in situations like this.

Investors, traders and economists are watching several G7 central bank meetings such as Japan, the United States and the United Kingdom.

The most notable of these is the very likely rate cut by the US Federal Reserve in September, as hinted at by Fed Chairman James Powell. This means that the Fed, and other central banks like it, see that the economy is getting healthier, and that there is therefore no need to take measures such as interest rate hikes.

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

Both beginners and experienced traders have also jumped into the crypto derivatives market. According to CoinGlass, the surge in BCH has contributed to more long-term investors entering the scene, introducing new contracts to the market. Online analysts are also optimistic that BCH’s strong rally will continue into next month.

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

Bitcoin Cash: Will the bullish momentum continue?

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

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

And that could be the case too. The bulls, after almost a month of continuous gains, will eventually get exhausted. Once the bears take control of the market, we could see the token stabilize in its current price range around $450.

It will take another month of positive market conditions for this type of movement to continue. Investors and traders will then have to monitor the broader economy and the upcoming decision of the Federal Open Market Committee, as the majority of decisions in the financial world will depend on this indicator.

Featured image from Medium, chart from TradingView

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