Bitcoin Cash up 10% ahead of hard fork

13 Jan 2023

The price of Bitcoin Cash (BCH) surged close to 10% over the last 24 hours as traders indicated possible changes to the network ahead of the protocol's hard fork in May.

Bitcoin Cash surpassed resistance levels of $108 to hit a high of $125 on Friday, CoinDesk reports. Increasing buyer interest could lead a drive to at least the $150 mark, the next resistance level.

The upcoming hard fork for Bitcoin Cash in May – an upgrade to a blockchain network – is expected to boost the security and privacy of the network. According to developers, plans are in the pipeline for so-called 'CashTokens', enabling decentralised applications directly on Bitcoin Cash.

Additional planned improvements include reduced transaction sizes, which would help to accelerate transaction times, as well as the function of a smart contract that may permit Bitcoin Cash-based applications offering derivates trading, recurrent payments and crowdfunding opportunities, amongst other usages, to users of Bitcoin Cash, the CoinDesk report goes on to add. 

According to the founder of Mechanism Capital, Andrew Kang, these significant improvements, together with an overall bottoming of Bitcoin Cash prices, set the course for a price rise over the next few weeks. "Charts look insanely bottomed and ready for impulse," Kang said on Twitter. 

Furthermore, other key factors that could bolster the price of Bitcoin Cash include the possibility of it becoming legal tender in St. Kitts and Nevis as early as March this year. Although no plans have been confirmed, the initiative was reportedly in the discussion phase last November.

The Caribbean country's Prime Minister, Terrance Drew said at the time: "Our nation has always been forward-thinking nation and a leader in exploring new industries."

He added: "I can confirm that we are prepared to explore that possibility with the guidance of experts and professionals and after consultation with our regional banking system. […] I welcome the opportunity to dialogue further with a view to exploring future opportunities to engage in Bitcoin Cash mining and making Bitcoin Cash legal tender here in St. Kitts and Nevis by March 2023, once safeguards to our country and our people are guaranteed."