Bitcoin Cash Rallies 10% as Investors Rebalance Portfolios for Cashinals Upgrade

Bitcoin Cash (BCH) climbed nearly 10% over the past 24 hours to around $587, outperforming much of the broader crypto market and posting one of its strongest daily gains in over a week.

The rally comes as derivatives and on-chain data point to rising bullish interest.

Futures Activity Surges, Funding Turns Positive

Data from CoinGlass shows that BCH futures open interest rose 18% in the past 24 hours to $773.29 million, meaning a sharp increase in capital exposure as traders return to risk-on positioning.

At the same time, the open interest–weighted funding rate flipped bullish to 0.0016%, after standing at -0.154% earlier in the day.

Related: Why the Bank of Japan’s 25 Bps Hike Could Trigger a Crypto Sell-Off

Large Wallet Rebalances Into BCH

On-chain data shows that a long-dormant wallet, labeled 0x03b5 and possibly linked to early crypto investor Erik Voorhees (ShapeShift founder), has recently swapped large amounts of Ethereum for Bitcoin Cash.

Over the past two weeks, the wallet exchanged more than 4,600 ETH, valued at about $13.4 million, for nearly 25,000 BCH. The activity has fueled speculation that some investors are rotating capital into BCH, which is often viewed as a lower-fee alternative to Bitcoin.

Related: Ethereum Could Get Faster in January With Gas Limit Rise to 80M Following BPO2 Fork

Cashinals Launch Adds to Momentum

BCH has also turned heads following the launch of Cashinals on December 18. Cashinals is an NFT-style protocol similar to Bitcoin’s Ordinals, enabling inscriptions and a dedicated marketplace.

A comparable rollout on Bitcoin in 2023 led to increased network activity and speculative interest, raising expectations for similar effects on the Bitcoin Cash network.

What’s Next For BCH Price?

Despite the rally, analysts warn that BCH is nearing an important resistance zone. A strong sell-wall is expected around $615. A clean break above this level could open the door for a move toward $640.

Bitcoin Cash (BCH) climbed nearly 10% over the past 24 hours to around $587, outperforming much of the broader crypto market and posting one of its strongest daily gains in over a week.

The rally comes as derivatives and on-chain data point to rising bullish interest.

Futures Activity Surges, Funding Turns Positive

Data from CoinGlass shows that BCH futures open interest rose 18% in the past 24 hours to $773.29 million, meaning a sharp increase in capital exposure as traders return to risk-on positioning.

At the same time, the open interest–weighted funding rate flipped bullish to 0.0016%, after standing at -0.154% earlier in the day.

Large Wallet Rebalances Into BCH

On-chain data shows that a long-dormant wallet, labeled 0x03b5 and possibly linked to early crypto investor Erik Voorhees (ShapeShift founder), has recently swapped large amounts of Ethereum for Bitcoin Cash.

Over the past two weeks, the wallet exchanged more than 4,600 ETH, valued at about $13.4 million, for nearly 25,000 BCH. The activity has fueled speculation that some investors are rotating capital into BCH, which is often viewed as a lower-fee alternative to Bitcoin.

Cashinals Launch Adds to Momentum

BCH has also turned heads following the launch of Cashinals on December 18. Cashinals is an NFT-style protocol similar to Bitcoin’s Ordinals, enabling inscriptions and a dedicated marketplace.

A comparable rollout on Bitcoin in 2023 led to increased network activity and speculative interest, raising expectations for similar effects on the Bitcoin Cash network.

What’s Next For BCH Price?

Despite the rally, analysts warn that BCH is nearing an important resistance zone. A strong sell-wall is expected around $615. A clean break above this level could open the door for a move toward $640.

The range between $588 to $600 could also act as a near-term test of strength. On the downside, a drop below roughly $528 could weaken the bullish outlook and signal a return to consolidation.