U.S.-based Coinbase and its Global Digital Asset Exchange (GDAX), as reported by Core Media, added support for Bitcoin Cash (BCH) earlier this year. The move was somewhat controversial, as the cryptocurrency’s value started surging before it was public, hinting at potential insider trading. Moreover, trading halted soon after it was launched.
Later on, GDAX clarified through a blog post that its employees were prohibited from sharing the information, and that trading was halted due to an avalanche of buy orders that saw $15.5 million change hands, and helped the cryptocurrency’s price surge to $9,600 on the exchange.
Per GDAX, 90% of all orders were buy orders, which led to a lack of liquidity on the BCH-USD trading pairs. The BCH-EUR and BCH-BTC seemingly failed to achieve liquidity and, as such, weren’t brought back.
Recently, the exchange announced that the BCH-BTC trading pair will be brought back on January 17.
We will open the BCH-BTC Order Book on Wednesday January 17 at 9:00 am PST. For more information see: https://t.co/CaeXKXCI1H
— GDAX (@GDAX) January 12, 2018
According to the exchange’s status page, the BCH-BTC trading pair will initially open in “post-only” mode and then enter a “limit-only” mode, presumably to establish liquidity. Only then will it be in a “full-trading” mode.
How will GDAX’s pair affect the market?
GDAX is one of the biggest cryptocurrency exchanges out there with fiat to crypto trading pairs. In the last 24-hour period, it processed a $493 million trading volume. On the BCH-USD trading pair, it is currently handling about 1.36% of Bitcoin Cash’s global trading volume.
Bitcoin Cash is currently trading at $2,448 and is down 2.28% in the last 24 hours. Given GDAX’s small influence over BCH’s overall trading volume, the cryptocurrency’s price should be affected, but a large pump or a large dump shouldn’t be expected given that the USD trading pair has been running for a while.
On GDAX itself, volatility is to be expected as traders who couldn’t access the BCH-USD pair will be able to either purchase or sell BCH using BTC. Those who gained access to the BCH tokens they had from the August hard fork likely already traded their coins on other exchanges.
While Bitcoin Cash supporters are now claiming the cryptocurrency’s value will rise, Bitcoin supporters claim it will crash as people dump their tokens. Whether this is all wishful thinking or one side is right will be seen on January 17.