Recently, focus has been on Bitcoin (BTC) and the two hard forks that broke off from the main chain: Bitcoin Cash (BCH) and Bitcoin SV (BSV). BSV and BCH prices have soared over the past week, outperforming even BTC.
On the grounds that the majority of cryptocurrencies could be viewed as securities, the U.S. SEC has been vigorously monitoring domestic crypto companies.
Jerome Powell, the head of the Federal Reserve, stated last week that digital currencies like Bitcoin had “staying power” as an asset class.
Powell allegedly stated that stablecoins used for payments are viewed by the central bank as a kind of money during a monetary policy hearing on Capitol Hill on last week.
He also claimed that cryptocurrencies like Bitcoin have “staying power” as an asset class. Additionally, he asserted that stablecoin regulation should be strengthened by the central bank.
The world’s largest cryptocurrency’s offshoot, Bitcoin Cash , has increased in value by almost 108% over the past week as speculators hope that American regulators will classify the Bitcoin-based altcoin in the same category as commodities.
Benjamin Stani, the director of business development and sales at crypto trading platform Matrixport said he heard rumors that Bitcoin forks obviously should get the same treatment as Bitcoin from the Securities and Exchange Commission, i.e. be considered commodities.
It makes sense looking at the graph that shows BCH price being pretty bland and then, after Powell’s speech, rising up.
He, however, warned that the overall rise is probably mostly sentiment related — “both are not tokens that are widely used and generally considered coins from the past cycle,” said Stani , adding that there was no fundamental upgrade on Bitcoin forks to lead to long-term growth.
However, the other reason for the current price increase in Bitcoin Cash appears to be the introduction of EDX Markets, a platform for institutional investors.
Financial behemoths Fidelity, Schwab, and Citadel Securities support EDX Markets, which is not registered with the SEC but has considerable clout thanks to its well-known backers.
The only cryptocurrencies that are listed on the platform are Bitcoin, Ether, Litecoin, and Bitcoin Cash. The market has viewed this exclusive listing as a vote of confidence in Bitcoin Cash, especially in light of the SEC’s increased scrutiny of other blockchain initiatives.
In order to address differences of opinion among the Bitcoin community regarding scalability and transaction capacity, the Bitcoin network underwent a fork in 2017 that produced Bitcoin Cash.
The great blockers and the minor blockers, two factions with various proposals, soon developed. The big blockers’ support for larger blocks of transactions resulted in the “hard fork” that gave birth to Bitcoin Cash in August 2017. By splitting the Bitcoin blockchain in two, Bitcoin Cash was given its own ledger.
A change in how the market views Bitcoin Cash may be indicated by its inclusion on a platform built for institutional investors. Despite its contentious beginnings and several forks, Bitcoin Cash’s performance over the past few months indicates it is gaining favor with professional investors.
After a second split in Bitcoin Cash in 2018, Satoshi’s Vision, led by Australian computer scientist and self-declared Bitcoin creator Craig Wright, was born. BSV trades quite similarly to the original Bitcoin. That’s advantageous right now since over the past few days, investors have flocked in droves to the most popular cryptocurrency.
In the last seven days BSV jumped by 54% and the force behind this boom could be the emergence of China back into the cryptocurrency space.
China recently modified its perspective on cryptocurrency. Beijing recently released a whitepaper named “Web3 Innovation and Development White Paper (2023)” that emphasized the importance of Web3 technology for the advancement of the internet.
The global markets might be severely impacted if China were to entirely withdraw the cryptocurrency prohibition or soften its stance, which would increase demand and drive up prices. However, based on what has been happening, there are still a lot of rumors swirling about everything right now.
A week ago, parliamentarians in the United Kingdom have approved a new law that would classify cryptocurrency as a regulated industry there.
The Financial Services and Markets Bill (FSMB), which was approved on Monday by the House of Lords, the upper chamber of Parliament, now moves on to the legislative process.
The comprehensive measure, which is over 340 pages long, was unveiled in July in an effort to make the most of Brexit-related freedoms and give authorities more control over the British financial system.
Although a proposal to regulate stablecoins within the nation’s payment regulations was included in the initial bill, revisions to treat all cryptocurrency as a regulated activity and provisions to oversee crypto advertising were introduced later as the bill moved through Parliament.