Why Bitcoin Cash (BCH) Is Volatile

Bitcoin Cash BCH/USD is trading higher by 9.03% to $247.35 over the trailing 24 hours. The popular altcoin has been volatile amid recent, broader strength in cryptocurrencies.

The price of Bitcoin BTC/USD moved above the $40,000 level over the weekend and continued to trade positively to start the week, pushing broader crypto along with it. 

Bitcoin's value spiked late last week when MicroStrategy Inc, led by Michael Saylor, bought 16,130 Bitcoins valued around $608 million, boosting optimism and driving the cryptocurrency's rise.

This purchase was made at an average price of $36,785 per Bitcoin, adding to their total holdings of 174,530 Bitcoins acquired at an average price of approximately $30,252 per coin.

The U.S. Securities and Exchange Commission (SEC) opened a forum for the public to comment on a proposed rule change that could allow asset management firm Fidelity to offer shares of its spot Ethereum ETH/USD exchange-traded fund... Read More.

Why This Matters To BCH Investors

The recent news regarding Fidelity Investments' Ethereum ETF application might not have a direct impact on Bitcoin Cash's market dynamics. However, it reflects a broader trend of growing institutional interest in cryptocurrencies, which could positively influence the sentiment surrounding Bitcoin Cash.

Investors seeing institutional interest in Bitcoin and Ethereum in general might also consider other cryptocurrencies like Bitcoin Cash as potential investments.

The positive news surrounding Bitcoin, such as MicroStrategy's significant purchase, can also have a spillover effect on other cryptocurrencies, including Bitcoin Cash.

When a prominent player like MicroStrategy invests heavily in Bitcoin, it often boosts overall market confidence in cryptocurrencies, leading to increased investment across the board.

See Also: Galaxy Digital CEO Lauds Michael Saylor As 'Legend'