In a volatile overnight session, Bitcoin Cash (BCH) and Bitcoin SV (BSV) posted notable rebounds, drawing attention from traders and investors monitoring the broader cryptocurrency market. The upward movement coincided with fresh developments in the ongoing push for spot Bitcoin Exchange Traded Funds (ETFs), reigniting short-term optimism across select digital assets.
BSV surged to a high of $32, recovering from its weekly low of $28.37. Meanwhile, BCH climbed to $200, rebounding from a recent low of $163 observed just last month. Despite these gains, both assets remain significantly below their previous peaks—BSV is still down over 44% from its July high, signaling persistent structural challenges.
Market Drivers Behind the BCH and BSV Rally
The recent price surge in both Bitcoin Cash and Bitcoin SV can be attributed to a broader market-wide short squeeze that lifted Bitcoin (BTC) above the critical $26,000 threshold. This was particularly significant as BTC had briefly dipped below the key support level of $25,000 just days prior. Historically, BCH and BSV have shown strong correlation with BTC movements, often amplifying gains—or losses—during periods of heightened volatility.
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The primary catalyst for the rally was the announcement that Franklin Resources, a financial giant managing over $1.5 trillion in assets, has filed with the U.S. Securities and Exchange Commission (SEC) for a spot Bitcoin ETF. Known for its prominent brands Franklin Templeton and Legg Mason, Franklin’s entry intensifies competition among institutional players seeking regulatory approval for direct crypto exposure.
This filing places Franklin alongside other Wall Street heavyweights—including BlackRock, Invesco, ARK Invest, and WisdomTree—all of whom have submitted similar applications for spot BTC ETFs. Additionally, Grayscale continues its legal and regulatory efforts to convert its GBTC product into a fully backed spot ETF.
Why a Spot Bitcoin ETF Matters
A spot Bitcoin ETF would allow institutional and retail investors to gain exposure to Bitcoin’s actual market price without the complexities of self-custody or exchange-based trading. By offering a regulated, transparent vehicle—similar to gold ETFs that now manage tens of billions in assets—spot ETFs could unlock substantial capital inflows into the crypto ecosystem.
Analysts widely believe that approval of a spot BTC ETF could trigger a domino effect across the digital asset space. Ethereum (ETH), as the second-largest cryptocurrency by market cap, stands as the most likely candidate for a follow-up product. Other contenders include XRP, Litecoin (LTC), and potentially Bitcoin Cash (BCH), given their classification outside of traditional securities frameworks in current regulatory discourse.
Bitcoin SV (BSV), however, faces an uphill battle due to its relatively low trading volume and limited ecosystem development. These factors reduce its attractiveness for institutional-grade financial products like ETFs.
Key Risks Ahead for BCH and BSV
Despite the short-term bullish momentum, several macroeconomic headwinds suggest that recent gains in BCH and BSV may not be sustainable.
One major factor is the upcoming release of the U.S. Consumer Price Index (CPI) data—an economic indicator closely watched by markets for clues about Federal Reserve monetary policy. With inflation expected to rise due to surging gasoline and crude oil prices—Brent crude now trading above $92 per barrel—investors anticipate tighter monetary conditions ahead.
Higher inflation readings typically lead to stronger dollar performance and risk-off sentiment in financial markets, which historically pressures speculative assets like cryptocurrencies.
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Moreover, past patterns show that rallies triggered by ETF speculation tend to be short-lived unless followed by concrete regulatory progress. Previous filings have generated temporary spikes in altcoin valuations, only to see prices retreat once momentum fades.
Price Outlook: Will BCH and BSV Retrace?
Given the current macro backdrop and technical dynamics, it’s reasonable to expect a pullback in both Bitcoin Cash and Bitcoin SV prices in the near term.
For Bitcoin Cash, a retest of the $190 support level appears likely if broader market sentiment turns negative post-CPI data. This zone aligns with recent consolidation patterns and represents a key psychological and technical floor.
Similarly, Bitcoin SV may fall back toward $28—the level that previously acted as short-term support earlier in the week. A break below this point could open the door to further downside pressure, especially if BTC fails to maintain its position above $25,500.
While long-term fundamentals such as blockchain adoption and network upgrades remain relevant, short-term price action will likely be dictated by macro forces and regulatory expectations rather than on-chain metrics alone.
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Frequently Asked Questions (FAQ)
Q: Why did Bitcoin Cash and Bitcoin SV prices rise recently?
A: The rally was driven by a short squeeze in the crypto market following Franklin Resources’ spot Bitcoin ETF filing, which boosted investor sentiment across correlated assets like BCH and BSV.
Q: Is a Bitcoin Cash ETF likely in 2025?
A: While no official filings exist yet, BCH’s classification as a non-security makes it a potential candidate for future ETF consideration—especially if a spot BTC ETF gains approval first.
Q: What impact does U.S. inflation data have on crypto prices?
A: Rising inflation often leads to expectations of higher interest rates, strengthening the U.S. dollar and reducing appetite for high-risk assets like cryptocurrencies, leading to downward price pressure.
Q: How does oil price affect Bitcoin and altcoins?
A: Higher oil prices contribute to inflationary pressures, influencing Fed policy decisions. Tighter monetary policy tends to reduce liquidity in financial markets, indirectly affecting crypto valuations.
Q: Are Bitcoin SV and Bitcoin Cash good long-term investments?
A: Both face challenges—BSV due to low adoption and volume, BCH due to competition from faster chains. Their viability depends on increased utility, developer activity, and macro tailwinds.
Q: What should traders watch next for BCH and BSV?
A: Key levels include BTC’s performance above $25,500, U.S. CPI data release, SEC decisions on ETF applications, and overall market liquidity trends.
Final Thoughts
While the recent bounce in Bitcoin Cash and Bitcoin SV offers a glimmer of optimism, investors should remain cautious. The combination of speculative ETF-driven rallies and looming macroeconomic data suggests that volatility will persist. For now, the path forward hinges less on individual coin fundamentals and more on regulatory clarity and broader financial market trends.
Staying informed, setting clear entry and exit points, and leveraging secure trading platforms can help navigate this uncertain but potentially rewarding landscape.