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Bitcoin Cash Rises 11% but Gains Could Be Short-Lived
The token was up 11% on the day, but analysts think the cryptocurrency will not be able to sustain its gains.
Updated May 9, 2023, 6:56 p.m. Published May 9, 2023, 6:56 p.m.
Bitcoin cash (BCH) has gained 11% over the last 24-hours even as bitcoin has declined.
Bitcoin’s price drop follows network congestion that sent transaction fees over the weekend skyward as demand for bitcoin Ordinals ramped up.
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BCH, which is a spinoff of the Bitcoin blockchain, designed to be more scalable and cheaper, seems to have benefited from bitcoin’s backlog of transactions, some market observers are saying.
BCH, which was recently trading over $122, was one of the only digital assets trading in the green on Tuesday.
“Bitcoin cash is a fork of Bitcoin so the market is speculating that there will be some spillover as a result of high fees/congestion,” Arca trader Kyle Doane said in a note to CoinDesk. Doane noted that the uptick for bitcoin cash will most likely be short-lived.
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The Bitcoin blockchain's flood of pending transactions over the weekend resulted in Binance, the world’s largest crypto exchange, temporarily pausing bitcoin withdrawals.
Yet Laurent Kssis, crypto advisor at CEC Capital, said that he doubts that the two are related. “I’m not confident BCH’s rise is a result of bitcoin’s network congestion as the move is not that detrimental to btc,”
Kssis added: “Sure BTC is dropping but this has been in the cards for a few days.
Bitcoin was recently trading at about $27,600, roughly flat from Monday, same time, and about where it stood at the beginning of the month. Last week, the largest cryptocurrency by market capitalization was trading near $30,000.
Kssis predicts bitcoin cash will drop again to around $110, as the current move up doesn’t appear to have staying power.
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Exchange Review - March 2025
CoinDesk Data's monthly Exchange Review captures the key developments within the cryptocurrency exchange market. The report includes analyses that relate to exchange volumes, crypto derivatives trading, market segmentation by fees, fiat trading, and more.
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Trading activity softened in March as market uncertainty grew amid escalating tariff tensions between the U.S. and global trading partners. Centralized exchanges recorded their lowest combined trading volume since October, declining 6.24% to $6.79tn. This marked the third consecutive monthly decline across both market segments, with spot trading volume falling 14.1% to $1.98tn and derivatives trading slipping 2.56% to $4.81tn.
- Trading Volumes Decline for Third Consecutive Month: Combined spot and derivatives trading volume on centralized exchanges fell by 6.24% to $6.79tn in March 2025, reaching the lowest level since October. Both spot and derivatives markets recorded their third consecutive monthly decline, falling 14.1% and 2.56% to $1.98tn and $4.81tn respectively.
- Institutional Crypto Trading Volume on CME Falls 23.5%: In March, total derivatives trading volume on the CME exchange fell by 23.5% to $175bn, the lowest monthly volume since October 2024. CME's market share among derivatives exchanges dropped from 4.63% to 3.64%, suggesting declining institutional interest amid current macroeconomic conditions.
- Bybit Spot Market Share Slides in March: Spot trading volume on Bybit fell by 52.1% to $81.1bn in March, coinciding with decreased trading activity following the hack of the exchange's cold wallets in February. Bybit's spot market share dropped from 7.35% to 4.10%, its lowest since July 2023.
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