Sunday, January 29, 2023

Korea Trades $1.7 Billion USD in Bitcoin Cash as Price Surges

Korea Trades $1.7 Billion USD in Bitcoin Cash as Price Surges

A sudden price surge over the last two days has seen Bitcoin Cash dollar value almost double. At press time it was worth $694 each, with Korean exchanges like Bithumb processing a huge share of the volume in Korean won (KRW).

Also read: Bitcoin Cash Holds off Spam Attack in Show of Strength

The forked currency’s volatility has been low recently, as the price hovered around the $300 USD mark for over a week. Bitcoin proper saw losses over the same period, dropping more than $300 to $4,101.

The sudden gains also saw Bitcoin Cash (BCC or BCH) reclaim the number three rank on CoinMarketCap, overtaking Ripple XRP. It was also the #1 highest-traded cryptocurrency over bitcoin over the past 24 hours, with 35.42 percent of all trades.

Korea and KRW Trading Lion’s Share of Bitcoin Cash

Notably, a large proportion of those volumes were in KRW. Of BCC’s share, Bithumb and Coinone traded the equivalent of $1.213 billion and $254.8 million respectively. Korbit traded $244.57 million worth.

Bitcoin Cash logoThe only significant BCC/USD volumes were on Bitfinex ($272.58 million).

Bithumb’s Bitcoin Cash volumes dwarfed that exchange’s BTC volumes, suggesting this is where the price rise is coming from. But what’s causing it?

The huge volumes on Korean cryptocurrency exchanges this year, and the traders behind it, remain mysterious. It’s possible the country has absorbed much of the volume from China, which this year saw more restrictions imposed on its own exchanges.

Also a mystery is who exactly mines Bitcoin Cash. According to Coin Dance, over 93 percent of the last 144 blocks were mined by “Other”, while vocal proponent ViaBTC mined only 1.39 percent.

Bitmain CEO Jihan Wu is also watching with interest. Though not directly involved with the Bitcoin Cash project, Wu has signaled that the company’s main mining pool may consider a BCC option:

Price May Be Growing as Short-Term Scaling Issues Solved

Could there be a new interest in Bitcoin Cash after the network brushed off a transaction “spam attack” this week? Whatever the cause, it was an interesting demonstration of how BCC’s larger block size capability handily dispensed with a large mempool backlog.

Bitcoin Cash could also be gaining investors’ confidence in general as it stablizes, solving short-term scaling issues. The new currency may benefit from any uncertainty in the BTC as well.

Or, it may simply be the latest Asian cryptocurrency trend for some other reason.

What’s causing the Cash price surge? Let’s hear your thoughts.

Images via Pixabay,

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