With the recent rally in the price of Bitcoin and the overall cryptocurrency market, Bitcoin Cash (BCH) investors have seen a much-needed increase in their profits. In fact, following a double-digit surge in the last week, the majority of BCH investors are now in the green. However, the question remains: Bitcoin Cash traders profit, rally sustainable?
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Bitcoin Cash Short And Long-Term Holders Enjoy Profits
On Thursday, Santiment, an on-chain data tracking platform, reported that both short and long-term holders of Bitcoin Cash are currently experiencing positive returns. The tracker's chart revealed that the average returns for 30-day and 365-day holders have surpassed their average cost price, indicating that investors who have held the digital asset for a year or less are currently profiting. This is the first time in 10 weeks that this group of BCH investors has seen a profit. According to data from Santiment and IntoTheBlock, 59% of Bitcoin Cash investors are currently in profit, while 38% are in the red and 3% remain neutral. Furthermore, the statistics indicate that there are more long-term investors in profit compared to short-term investors, which supports the common belief that holding cryptocurrency for an extended period of time is generally the most effective investment strategy.
Bitcoin Cash traders profit, rally sustainable?
Many investors who have held Bitcoin Cash for both short and long periods are currently making profits due to a recent surge in the digital asset's value. This price increase was primarily driven by the Grayscale ruling, which caused BCH's price to rise by over 14%, reaching $220 before undergoing a slight retracement. Despite this, most of the gains have been sustained, as evidenced by the high percentage of holders making profits.
However, according to a report by Santiment, the continued rise of Bitcoin Cash will depend on the activity of large investors known as "whales." During the price surge, there was a noticeable increase in whale activity related to BCH, which likely played a role in the asset's rise.
If these whales continue to be active and put buying pressure on the coin, the price of BCH could continue to appreciate. However, if these large holders shift from buying to selling, the price of the asset could quickly crash, especially since the market is already experiencing a decline in the euphoria felt earlier this week.
As of now, Coinmarketcap data shows that Bitcoin Cash is trading at $219, reflecting a 14.57% increase over the past week.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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