By ForexTime
That 160% is far superior compared to the “OG” Bitcoin’s 64% year-to-date gains.
BITCOINC (Bitcoin Cash) has now touched the $700 mark for the first time since November 2021, before the crypto world fell into the infamous crypto winter of 2022.
According to CoinGecko data, Bitcoin Cash is the world’s 14th largest cryptocurrency, with a total market value (market capitalisation) of US$13.4 billion.
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Created in August 2017, Bitcoin Cash is an offshoot of the original Bitcoin, with the former intended to be the faster and cheaper version of the latter.
Dogecoin is now the 9th largest cryptocurrency in the world, according to CoinGecko, with a market cap of nearly US$30 billion.
Created in December 2013, this cryptocurrency began as a “joke” off the popular meme featuring the Shiba Inu dog.
Today, it is mainly used as a tipping system on some social media sites, positioning it as the “internet currency”.
More recently, in March 2024, Elon Musk hinted that Dogecoin could be used to buy Tesla cars “at some point”.
This crypto has punched its way to a 9-month high, now trading above the psychological $110 level for the first time since July 2023!
Litecoin is the world’s 22nd-largest cryptocurrency, with a market cap of just over US$ 8 billion, according to CoinGecko.
This peer-to-peer cryptocurrency was created in 2011, as a faster version of Bitcoin and intended to act as a “digital silver” compared to Bitcoin’s “digital gold” status.
Last month (March 2024):
The derivatives arm of US-based crypto exchange, Coinbase, has obtained approval from the Commodity Futures Trading Commission (CFTC) to launch futures contracts for Dogecoin, Bitcoin Cash, and Litecoin.
And those futures contracts are set to begin trading this month!
Note from the charts above, how this piece of news in March helped awaken Dogecoin, Bitcoin Cash, and Litecoin prices from their respective slumbers in the months prior.
Furthermore, these cryptos may have also been jolted by the revived excitement and mania surrounding memecoins and altcoins.
Having a futures contract go live could boost the underlying cryptocurrency’s prices.
Here’s how Bitcoin and Ether prices fared when their respective futures contracts went live:
That added to the gains already garnered in the prior months (51.4% in November 2017, and 52.9% in October 2017).
Ether then went on to climb even higher in the ensuing months: up 37% in March 2021 and up another 42.5% in April 2021.
In short, the rollout of futures contracts has historically proven to be a price booster for the underlying crypto.
And this could be due to a variety of reasons, such as:
But wait, there’s more …
Of course, the much-anticipated Bitcoin “halving”, which happens once every 4 years, is due later in April 2024.
A “halving” is when the rewards for mining new Bitcoins are halved, which in turn reduces incoming new supply.
And if demand for Bitcoin holds up post-halving, coupled with lessened supply, such dynamics tends to push prices higher.
Note also the positive correlation between Bitcoin and Dogecoin, Bitcoin Cash, and Litecoin.
Over any 5-day rolling period over the past 5 years, these cryptos have moved in the same direction as Bitcoin:
That means, when Bitcoin prices go, these 3 cryptos tend to follow, and vice versa.
Note how the 14-day relative strength index (RSI – a popular technical indicator) of the 3 highlighted cryptos are close to the 70 mark which denotes “overbought” conditions.
This suggests that a technical pullback is likely due over the immediate term!
Still, it’s these heightened volatility (wild price swings) where traders find the greater opportunities.
Using Crypto CFDs, traders stand to potentially profit in both environments, whether prices are rising or falling.
Overall, if these futures contracts, as well as the Bitcoin halving”, have the expected impact on crypto prices …
this should lead to further gains for Dogecoin, Bitcoin Cash, and Litecoin!
Of course, if the ongoing meme-mania persists, buffered by risk-on sentiment, that should lend a helping hand for these crypto bulls.
ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com
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