Asian Traders Looking to Win Big With Bitcoin Cash

As Coinstaker reported last week, bitcoin cash (BCH) is now almost certainly looking to split into two cryptocurrencies. Even though it’s certain the two cryptocurrencies will be interlocked in a serious competition, many Asian traders are willing to bet on both. They believe that divided, the two “new” cryptocurrencies will be worth more than as one.
Asian traders have been buying up a storm of BCH before the next hard fork. The network software upgrade will leave traders with the ownership of two coins, which have a greater combined value than the current price.
Asian traders aren’t the only ones who noticed this interesting development. The chief of markets at Kenetic Capital, James Quinn mentioned that many institutions have caught up and have gotten in on the act. According to Quinn, the interest in the area has increased dramatically.
Hard forks are nothing new for cryptocurrencies. While people may still be unsure of its implications, traders and investors can wisely use these hard forks for a quick gain. Additionally, this type of trading is easily understood without the need for experience in the crypto markets. Institutions can find common ground in these trades with special dividends or stock splits.
Kenetic is a crypto and blockchain investment firm based in Hong Kong. The firm executes trades with its own capital and also takes investment requests from institutions and solo high-net-worth clientele. Needless to say, the Asian traders in the firm have seen a dramatic increase in BCH trades.
Of course it’s not only Asian traders and Kinetic getting in the action. According to data from CoinMarketCap, the trading volume of BCH has seen a large increase since the beginning of the month.
Asian traders are not the only ones catching wind
November 4th saw $1.4 billion in daily trading volume, which is 6 more times than the $228 million registered on November 1st. This resulted in the price of BCH rising up to $638 on November 7th and a week from then it’s around $500. The current price is still a 10% increase over the October kept levels.
That being said, bitcoin cash was routinely doing hard forks. Each six months saw a new upgrade since the split from the original network back in 2017. Some of the largest exchanges like Binance, Huobi OKEx and Bitfinex all expressed their support for the upgrade. According to their traders, this will bring additional liquidity in the secondary market for the forked-off assets.
While BCH volumes are increasing, there is no guarantee that buyers will hold on to their BCH after the split. Quinn believes that a strong possibility exists for individual investors taking advantage of the increase in volume and volatility. These traders won’t be waiting for the hard fork. This is by no means a new trend and was done multiple times in 2017, even right before bitcoin cash split from bitcoin.
It was quite different then, since the prices were going through the roof and it was quite possible the new token would bring in tons of profit. This time there are no guarantees and therefore, buying BCH is to be considered a risk. The developments could be instrumental into shaping investor strategies the next time such an event occurs.
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