Bitcoin Cash Defies Market Downturn with 26% Surge, Fueled by $500 Million Investment

Bitcoin Cash (BCH) experienced a remarkable price surge this week, defying the broader cryptocurrency market downturn. Over the past seven days, BCH gained over 10%, making it the only major asset with a positive weekly return, while Bitcoin (BTC) fell 10.54%, Ethereum (ETH) lost 13.13%, Solana (SOL) dropped 9.14%, Dogecoin (DOGE) declined 13.18%, and Zcash (ZEC) plunged 19.75%.

The rally was particularly sharp in a 24-hour period, with BCH jumping 26% from a low of $446 to a high of $565 before retreating to around $549. This performance pushed BCH's market capitalization to $10.8 billion, closing in on Cardano's (ADA) $14.7 billion cap and threatening its position in the top-10 rankings by CoinMarketCap.

A key driver behind this move was the announcement from MFI International Limited, a Hong Kong-based fintech company, which revealed plans to acquire $500 million worth of Bitcoin Cash as part of its new digital asset treasury strategy. This substantial investment triggered significant bullish sentiment, leading to increased liquidity inflows and whale accumulation.

Technical indicators supported the surge, with BCH's RSI and MFI indicators rising significantly from October lows, and the price breaking above a two-month descending resistance level. However, derivatives activity showed open interest surging from under $380 million on November 18 to over $600 million, indicating heightened leverage and potential volatility risks if prices pull back unexpectedly.