Bitcoin Cash (BCH) has recently experienced a significant surge, gaining nearly 40% and outperforming other Layer-1 (L1) blockchains this year. This impressive rally has pushed Bitcoin Cash into the top 10 cryptocurrencies by market capitalization.
Several factors have contributed to Bitcoin Cash's strong performance. One key driver is market rotation and speculation, which has led to increased interest in alternative cryptocurrencies. Additionally, news of mF International, a Nasdaq-listed company, raising $500 million to purchase Bitcoin Cash for establishing a BCH treasury has further fueled positive sentiment.
Bitcoin Cash is a fork of Bitcoin that was introduced in 2017. It was designed to address Bitcoin's scalability issues by increasing the block size, allowing for faster and cheaper transactions. Bitcoin Cash focuses on facilitating fast, low-fee payments, making it relevant in emerging economies, particularly in Latin America and Southeast Asia.
In April 2025, Bitcoin Cash demonstrated a rebound alongside Bitcoin's price movements. By July 2025, both assets displayed consistent gains, reflecting approximately a 20% increase since the beginning of the year. Since then, BCH has shown stronger gains and smaller declines compared to BTC. As of early December 2025, BCH has risen cumulatively by 31%, while BTC has fallen over 11%.
On May 15, 2025, Bitcoin Cash completed its Velma hard fork, which introduced VM Limits and BigInt CHIPs. These enhancements aim to improve smart contract and DeFi capabilities, positioning Bitcoin Cash to compete with other public chains like Ethereum, Solana, and Tron.
Despite Bitcoin Cash's recent outperformance, some analysts suggest its growth potential may be limited compared to newer projects. While it remains a safe haven for traders seeking consistent performance, its established nature may hinder explosive growth. However, its simplicity, branding, and role in peer-to-peer transactions continue to maintain its relevance.
The future performance of Bitcoin Cash will depend on various factors, including broader Bitcoin market trends and sustained institutional demand. While some analysts believe breaking above $1,000 will hinge on these factors, others remain optimistic about its long-term potential. Technical analysis suggests consolidation between $500 and $560, with a breakout above resistance potentially reigniting a bullish trend.
