Hold onto your hats folks! There is a BCH price rally happening right now! But why!?
The coin has rallied almost 30% at the time of writing; according to coinmarketcap.com, BCH is currently up 28.94%. Are we seeing a repeat of what Ripple (XRP) accomplished last week?
BCH Price Rally: Is Bitmain the Cause?
So without a doubt, BCH is the best performing coin on the market right now. Analysts are attributing the BCH price rally to the successful IPO filing of Bitmain with the Stock Exchange of Hong Kong Limited.
Mati Greenspan, the senior market analyst for social trading platform eToro, said the following: “This spike was definitely caused by Bitmain’s IPO filing.”
So how come Bitmain news is causing a BCH price rally?
Back in August, a Bitmain investor deck was leaked to the public. Thanks to this, the public got an eyeful of Bitmain’s holdings in various cryptocurrencies including Ethereum, Bitcoin and… Bitcoin Cash.
The investor deck showcased that Bitmain has held over 1 million Bitcoin Cash since late 2017. This amount accounts for nearly 6% of the entire circulating supply of BCH and was considered “a very powerful statement that they have skin in the game and put their money where their mouth is.”
Baring in mind that Bitmain is one of the largest digital currency miners in the world, this makes a BCH price rally plausible.
However, holding such a large amount worried investors, and rumors circulated citing liquidation concerns. Speculation grew about the IPO of Bitmain and “whether the conglomerate will be able to successfully conduct the public offering of its equity.”
But the successful filing of the IPO yesterday has allayed those concerns. The miner filed a prospectus for the offering, showing its intention to offer securities to the public, according to CoinDesk.
The BCH price rally has been an immediate indication of investors’ excitement for this news. BCH is currently trading at $580.63. At the close yesterday, that figure was $447.77.
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