Bitcoin Cash Doubles in Price Since April Reaching 2025 Peak

Bitcoin Cash (BCH) has extended its three-month rally, doubling in price since the lows in April and reaching a new peak for 2025. The cryptocurrency is currently trading just under $500, with increasing social media mentions driving its momentum. This resurgence comes as traders return to BCH, renewing its narrative after years of neglect, particularly as Bitcoin (BTC) made new all-time highs.

BCH's recent performance includes breaking above $600 during the November 2024 rally, adding more than 10% in a single day. This sparked hopes for an even larger breakout, with traders noting that BCH is attempting to overcome a sell wall, which could lead to a jump to a higher price range once the selling pressure decreases. The coin's open interest has also increased to a six-month high, at over $364M, with a balanced long to short ratio indicating no potential for a short squeeze.

The recent rally in BCH is largely driven by social media hype, with mentions surging as the price began to recover. This has pushed BCH to a new peak for 2025, making it a notable performer in the current market environment. Despite this, BCH's on-chain metrics do not reflect the recent price activity, indicating that it remains a niche coin with relatively low usage.

BCH's usage still lags behind other cryptocurrencies, with around 300K BCH changing hands each day, moving just 1.5% of the supply. The chain carries around 55K daily active addresses, primarily serving as a regular coin with limited DeFi use cases and cross-chain capabilities. The BCH team has focused on solving issues related to flexible difficulty adjustment to avoid the effects of competing BTC miners switching between chains.

BCH mining activity has fluctuated between 3 and 7 EH/s in the past year, with the hashrate not seeing any dramatic fluctuations. The network has remained relatively stable, with BCH being profitable to mine even for older equipment. However, BCH mining rates have remained close to the levels of 2018, while the BTC network has expanded by more than 20 times.

The recent price rally may increase long-term holding, as investors expect a recovery to a higher price range. This trend is part of a broader movement in the cryptocurrency market, where Bitcoin Cash is gaining traction as an alternative to Bitcoin. The rise in BCH's value can be attributed to increased institutional adoption, limited supply, and growing acceptance of cryptocurrencies as a legitimate asset class.

Despite the volatility in the cryptocurrency market, Bitcoin Cash has managed to maintain its value and even surpass previous highs. This is a positive sign for investors who have been holding onto their BCH, as it indicates that the cryptocurrency has the potential to continue appreciating in value. The new peak for Bitcoin Cash in 2025 underscores the growing acceptance of cryptocurrencies as a legitimate asset class and highlights the potential for growth in alternative cryptocurrencies.