Bitcoin Cash (Bitcoin Cash) and Litecoin (Litecoin) are competing under conditions where both cryptocurrencies need significant effort to return to their historical peaks. The market value of Bitcoin Cash is approximately $5.7 billion, and its price is 92.5% lower than its historical peak of $3,786. On the other hand, Litecoin, with a market value of $4.5 billion, is trading 85.9% less than its price record of $410.
Volatility and Challenges
Bitcoin Cash has experienced severe fluctuations this year. Its price reached $687 in mid-January but fell to $180 by late June. However, since July 25, the price of this cryptocurrency has increased by 31.2%. In comparison, Litecoin has also experienced a 26% growth.
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Returning to the price peak by late September could be a realistic goal for both cryptocurrencies by the end of the year. Bitcoin Cash needs to grow by about 28.8% to reach $366, while Litecoin requires an increase of about 38.7% to return to $80.
Impact of Futures Contracts and ETF Requests
The Chicago Mercantile Exchange (CME) has launched Bitcoin Cash futures contracts, allowing large investors to trade on its price changes without holding Bitcoin Cash directly. Additionally, Grayscale submitted a request on September 11 to convert its Bitcoin Cash fund into an exchange-traded fund (ETF) to the U.S. Securities and Exchange Commission. Approval of this request could increase demand for Bitcoin Cash.
While Litecoin currently has exchange-traded funds, demand for it has been weak, and this fund has recorded no net capital flow in two consecutive sessions. Moreover, rates indicate that the price increase of Litecoin in September was not sustained, and its price fell after reaching $80.
In summary, if Bitcoin Cash exchange-traded funds are approved, this cryptocurrency could have a greater growth capacity compared to Litecoin. However, it should be noted that a price drop below $256 could bring Bitcoin Cash's price down to the range of $200 to $208. Meanwhile, if Litecoin falls below $57, it may decrease to $54.
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