Bitcoin Cash surges 75% in quarter, hits $526 on Fed rate cut hopes

Bitcoin Cash (BCH) has surged past the $526 mark, indicating a robust upward trend that has been gaining traction since the beginning of the month. This rally is largely driven by expectations that the U.S. Federal Reserve may soon reduce interest rates, with increasing political pressure on Fed Chair Jerome Powell adding to the urgency. Although rates remained unchanged in June, optimism surrounding a potential policy shift in July has bolstered risk assets, particularly in the cryptocurrency sector.

BCH has experienced a 75% increase over the past quarter, with its market capitalization now standing at $10.3 billion. The surge in trading activity, with daily volume up over 70%, has pushed the price to approximately $521. Analysts attribute this rally to a technical breakout, as BCH has surpassed a falling trendline, triggering bullish sentiment among investors.

Open interest has also surged by 26%, and the rising liquidations of short positions suggest a potential short squeeze. According to analysts, if the current momentum persists, BCH could be on track for a long-term move toward $1,700. However, the crypto markets remain sensitive to macroeconomic changes, and any sudden shifts in sentiment could disrupt the uptrend. For now, traders seem confident that Bitcoin Cash has further room to grow.

At the time of writing, BCH has slightly dropped and is trading around $516.