On Monday Bitcoin Cash price soared climbing 19 percent and after a week of steady gains is now 83 percent against the dollar.
The cause of the impressive rally could possibly be an upcoming bitcoin cash fork, which will increase the size of the blocks of transactions.
Massive Increase to 32 MB
Analyst, Mati Greenspan at eToro said that the hard fork which is planned for May15th will increase the block size to 32MB (from the current size of 8 MB) and the SegWit protocol will be removed.
A Complete New Coin
He went on to say that the hard fork will completely replace the old coin with a new coin so anyone who is looking to receive a dividend will be disappointed. He assumes that if all goes well those looking for a ‘free lunch’ will not get one.
Spike in Trading
Another factor contributing to the rise in price of BTC is a spike in volumes over the last couple of days in Korean won and Japanese yen, which is adding to the momentum.
He added that these currencies are only a small portion of the market adding to the snowball effect and is not driving the market.
Previous Bitcoin forks is associated with rising prices in the minds of crypto traders.
Underpinning the rally is Chinese bitcoin Antpool who are restricting the supply of Bitcoin Cash, this according to CEO of CryptoCompare.com, Charles Hayter.
Bitcoin Cash is now trading at $1,394 and has a market cap of $23.9 billion, making it the fourth-largest cryptocurrency with a circulation of $23 billion.
Ripple which is the third largest cryptocurrency price fell 2 percent and is now valued at $0.87.