As the price of Bitcoin and the general crypto market continues to rally, Bitcoin Cash (BCH) investors have found themselves on a profitable path once again. After experiencing a double-digit surge in the last week, the majority of BCH investors are now in the green. However, the question now arises: will the price of BCH continue to maintain this surge?
According to on-chain data tracking platform Santiment, both short and long-term holders of Bitcoin Cash are currently experiencing profitable returns. The platform’s chart reveals that the average returns for 30-day and 365-day holders have risen above their average cost price. This means that investors who entered the digital asset within the last month, as well as those who have held it for a year, are currently reaping the benefits. Notably, this marks the first time in 10 weeks that this cohort of BCH investors has seen profits.
The data from Santiment is reinforced by that from another on-chain tracker called IntoTheBlock. According to IntoTheBlock’s data on its website, 59% of all BCH investors are in profitable territory, while 38% are in the red and 3% are in neutral territory. This suggests that a majority of BCH holders are currently enjoying gains.
Additionally, IntoTheBlock data reveals that 96% of BCH holders have held their positions for more than one year, while 3% have held between 1-12 months, and 1% have held for less than one month. This further supports the idea that long-term investors are more likely to see profits compared to short-term traders. It also reinforces the prevailing belief that buying and holding cryptocurrencies is often the most effective investment strategy.
The recent spike in the price of BCH has contributed to the profitability of both short and long-term holders. Following the Grayscale ruling, which led to a market surge, the price of BCH rose over 14%, reaching the $220 level before experiencing a slight retracement. So far, most of these gains have been sustained, as evidenced by the high percentage of holders currently in profit.
However, Santiment highlights a crucial factor that could impact the future price of BCH: whales. During the price spike, there was an increase in whale activity in relation to the BCH token, indicating that they likely played a role in driving up its value. If these large holders continue to be active and exert buying pressure on the coin, the price of BCH may continue to appreciate. Conversely, a shift from buying to selling among these whales could quickly crash the price, especially since the market is already experiencing a receding euphoria from earlier in the week.
As of now, data from Coinmarketcap shows that Bitcoin Cash is trading at $219, reflecting a 14.57% increase in the last week. This indicates that the positive momentum of BCH has been sustained, at least for the time being.
In conclusion, the recent surge in the price of Bitcoin Cash has brought profitability to both short and long-term holders. The data suggests that long-term investors are more likely to see gains compared to short-term traders. However, the future price of BCH will depend on the activity of whales and their buying or selling behavior. Continued buying pressure from these large holders could lead to further appreciation, while a shift to selling could quickly reverse the gains. It remains to be seen whether Bitcoin Cash can maintain its current surge in the face of market fluctuations and whale activity.
