The entire cryptocurrency market saw negative price action in early June after the U.S. Securities and Exchange Commission (SEC) filed new lawsuits against the world’s largest exchanges Binance and Coinbase.
However, sentiment quickly turned bullish after the world’s largest asset manager, BlackRock, submitted a major exchange-traded fund (ETF) proposal on June 16. With the BlackRock ETF filling, there has been a wave of ETF filling and institutional trading interest in digital assets.
The launch of EDX Markets on June 20, backed by Wall Street giants Fidelity Investments, Citadel Securities and Charles Schwab, has given a boost to a particular segment of the market, namely bitcoin coins such as Bitcoin Cash (BCH) and Bitcoin SV (BSV). Forks and other proof-of-work (PoW) cryptocurrencies such as Kaspa (KAS).
The exchange debuted Bitcoin (BTC), Ether (ETH), Litecoin (LTC) and BCH. The addition of BCH has fueled an uptrend for other Bitcoin forks.
Among the top gainers in June, three Bitcoin forks dominated the list, followed by Kaspa and FLEX Coin (FLEX). FLEX benefits from integration with Open Exchange (OPNX), which is backed by the co-founders of the bankrupt Three Arrows Capital fund.
That compares with a monthly gain of 11.94% for bitcoin, which topped the $30,000 level for the first time since April 2023.
FLEX Coin (FLEX) Gets Short-Term Boost With Link To 3AC Co-Founder
flexible Announce Transition to OPNX, the bankruptcy claims exchange, in May 2023. On June 27, the token’s price hit a 13-month high of $4.37.
OPNX is backed by the co-founders of now-bankrupt venture fund Three Arrows Capital. The co-founders reportedly face $1.3 billion in liability for actions that exacerbated the fund’s losses.
Nonetheless, the duo continued to support OPNX under the new venture fund, using the same branding as the previous fund.
FLEX received Seychelles court approval to restructure its exchange on March 6. Its integration with Open Exchange gives utility to the FLEX token in OPNX to settle claims and earn staking rewards.
Notably, as FLEX prices soared to peak levels in 2022, trading volumes remained subdued, accounting for only about 0.01% of the $1 billion in daily trading volume at its peak, raising red flags.
It represents a situation of large fluctuations in illiquid assets. With limited liquidity, traders can push up the price of these tokens more easily than larger, more liquid assets.
Technically, the 2022 breakout level around $5.08 and the all-time high of $7.56 will act as resistance to the upside. The token faces an 80% downside risk to $0.75, which represents the May 2023 accumulation level.
Bitcoin Cash (BCH) Rides EDX Market Uptrend
BCH more than doubled in price in June after it was listed on EDX Markets. BCH is one of four cryptocurrencies to debut on the platform, along with BTC, ETH and LTC.
While the EDX listing served as a positive catalyst, negative funding in the perpetual swap market and potential market manipulation by South Korean exchange Upbit were also major drivers of the recent uptrend.
token price witness According to the latest news from cryptocurrency analysis agency The TIE, a total of $21 million was liquidated in June. That level was significantly higher than usual, with “daily liquidations totaling tens of thousands of dollars, if any.”
Total fees paid on the Bitcoin Cash blockchain have remained below $200 since the beginning of the year, suggesting that blockchain usage is limited.
In contrast, Litecoin, which offers similar utility, generates around 10 times as much fee income for miners as BCH. Poor fundamentals and high liquidation levels raise red flags for the sustainability of the recent rally.
BSV Rides the BCH Wave Despite Poor Fundamentals
BCH and BSV have a strong correlation of 0.78, which seems to be the reason for BSV’s 31.4% rise in June.
BSV has been on a sustained downtrend since 2022, as interest in the blockchain fades after the cryptocurrency bull run and its trading volumes dry up.
The token hit an all-time low of $21.43 on June 10 before catching the bullish wave of BCH and starting to rise.
Its poor performance drives miners away from its ecosystem, making 51% attacks on Bitcoin SV relatively cheap – one-hour attack Require The price of Bitcoin SV is less than $2,000 compared to Bitcoin’s $1.4 million, which makes Bitcoin SV vulnerable.
Related: ‘Bitcoin Jesus’ Says Ethereum Is the Front Runner for Global Cryptocurrency Adoption
Kaspa (KAS) Benefits from Improved Performance, Low Liquidity
Kaspa is a blockchain network based on PoW consensus, similar to Bitcoin and Litecoin.
Kaspa offers a high throughput of 1 block per second, compared to 1 block every 10 minutes for Bitcoin.Blockchain builder Kaspa Labs has also hinted at the launch of a public testnet that will improve Its scalability of 10,000 times seems to have boosted its market sentiment.
However, tokens are primarily Transactional Unregulated exchanges with low trading volume and low trust scores, according to CoinGecko. This makes cryptocurrencies vulnerable to high volatility and manipulation.
Technically, if the bullish momentum persists, KAS will retest the 2023 high around $0.40. On the downside, the coin is at risk of a pullback to yearly lows around $0.15.
While the token has shown signs of an illiquid market, making it vulnerable to volatility and facing stiff competition from large PoW networks like Bitcoin and Litecoin, its one-year price action has been positive, with highs and lows. Higher highs, higher lows.
eCash (XEC) Joins BSV and BCH in Bitcoin Fork Rally
Cryptocurrency eCash (XEC) is a rebranded version of the third-level Bitcoin fork, Bitcoin Cash ABC, which is another fork of Bitcoin Cash, such as Bitcoin SV.
Similar to BCH and BSV, XEC has also ridden the momentum, taking all boats in the BTC fork category.
Similar to Bitcoin SV, eCash lacks fundamental value and exhibits volatility due to illiquid markets. The token is listed on some top exchanges like Binance and Bithumb. However, it is not yet supported by any U.S. exchanges, which raises red flags.
The rise of illiquid and loosely based tokens suggests that there may be some price manipulation in these tokens, affecting their short-term price. The long-term value proposition of Bitcoin forks remains questionable, with less utility and less security.
Additionally, the cryptocurrency market is still suffering from the adverse effects of the SEC case. Tokens deemed securities such as Cardano (ADA), Polygon (MATIC) and Flow (FLOW) are all down more than 20% this month.
Building a bullish narrative has been difficult as markets grapple with legal challenges. Given that Bitcoin is leading the market, its price action is critical in determining the direction of altcoins.
This article does not contain investment advice or recommendations. Every investment and transaction involves risk, and readers should do their own research when making a decision.
This article is for general informational purposes only and is not intended and should not be construed as legal or investment advice. The views, ideas and opinions expressed here are solely those of the authors and do not necessarily reflect or represent the views and opinions of Cointelegraph.
Svlook
