Bitcoin cash is leading crypto higher after Tax Day

Bitcoin cash gained more than 10% Wednesday, outpacing most other major cryptocurrencies after the Internal Revenue Service extended the deadline for paying US income tax after a computer glitch Tuesday.

Multiple Wall Street strategists predicted a slump in crypto prices ahead of tax day as digital currency investors may have sold cryptocurrencies in order to free up cash to pay taxes, with Tom Lee of Fundstrat Global Advisors predicting a rebound soon after the deadline as selling pressure eased.

Bitcoin and Ethereum, the second- and third-largest cryptocurrencies, were up about 2.5% Wednesday.

It wasn’t immediately clear why bitcoin cash, the fourth-largest cryptocurrency by market cap, was leading the gains on Wednesday. On a CNBC segment Tuesday evening, CEO Brian Kelly of crypto fund BKCM encouraged viewers to buy bitcoin cash, saying it had “been left for dead” but “it’s not dead yet.”

However, the price of bitcoin cash did not see any notable uptick until the wee hours of Wednesday morning, between 2 and 4 a.m. Eastern Time.

Bitcoin cash, which split from its namesake bitcoin in August 2017, has been accused of misleading investors by piggy-backing off the bitcoin name. While the new cryptocurrency includes the history of the original bitcoin’s transactions up until the split, since the fork, the two currencies are unrelated except for their shared history and name.

Vocal bitcoin cash supporter Roger Ver, who owns and refers to bitcoin as “bitcoin core,” has appeared on numerous internet talk shows, including the conspiracy theory site InfoWars, to promote the coin.

You can track the price of 20 cryptocurrencies in real-time on Markets Insider.

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