Coinspeaker
Bitcoin Cash Jumps 7% amid Mt. Gox Repayments, Eyes $400
Bitcoin Cash (BCH), a leading blockchain network created as an alternative to Bitcoin (BTC), has witnessed remarkable growth in the past 24 hours and is now eyeing the $400 price level. The altcoin is up by around 7% and is trading at $375.40 at the time of writing, after rebounding from the $348 price level.
The surge in the price of BCH comes at a time when Mt. Gox, a bankrupt digital asset trading platform, has initiated creditor repayments. It is important to note that the exchange had $9 billion in Bitcoin and Bitcoin Cash along with some cash – all set to be paid to the creditors of the exchange. As per Arkham data, the exchange currently has 80,000 BTC, worth around $5.9 billion.
Creditors pointed out on social media platform X (previously known as X) that they had started receiving repayments in BTC and BCH. Notably, the crypto community believed that the price of both cryptocurrencies would be affected by the repayments, expecting that those who receive the funds would immediately sell their digital assets to capitalize on the gains. But that does not seem to be the case.
Not long ago, Mt. Gox transferred $3 billion in BTC and $53 million in BCH to leading crypto exchanges Kraken, Bitstamp, BitGo, and others. The distribution began on July 25, causing Bitcoin to dip slightly and then explode by more than 5%. The world’s largest cryptocurrency captured the $67,000 price level as well.
Notably, Mt. Gox has more than 200,000 creditors, which are expecting to receive over $9 billion throughout the restitution process.
BCH Price Action
The trading volume of Bitcoin Cash rose by 11.28%, currently standing at $257 million with a market capitalization of $7.4 billion and BCH is ranked as the 16th largest digital asset in the market. The altcoin is up around 1% in the past seven days. However, in the past month, BCH is up only 0.05%, indicating sluggish movement.
BCH surged from $290 at the start of July and even breached the $400 price level at one point. However, the bulls were unable to sustain their presence. As per the daily chart by TradingView, BCH does show chances of a potential surge.
The Relative Strength Index (RSI) reads a value of 49, indicating that the bears and the bulls are almost evenly matched. However, the gradient of the RSI line confirms that higher prices are possible since the buyers are gradually taking control of the BCH price action. But, for an explosion in the price action, Bitcoin Cash needs to match the volumes as those of March.
