The Surge of Bitcoin Cash
On the 12th of February, Bitcoin Cash (BCH) witnessed a significant price increase, reaching a high of $280, which marked a remarkable 20% surge over the past week. This impressive rally has enabled BCH to eclipse Litecoin (LTC) in their shared quest for a $6 billion market capitalization in the year 2024.
Market Capitalization Milestone
Both Bitcoin Cash and Litecoin, originally forked from Bitcoin (BTC), are in a tight competition. With the latest crypto market rally, major Proof-of-Work (PoW) coins including BTC and BCH have seen substantial triple-digit gains, while LTC’s increase has been relatively modest with a 20% rise from October 16, 2023, to February 14, 2024. Post-halving, Litecoin’s momentum has waned, trading at $70 and reflecting a 30% decrease from its price before the event.
Institutional Interest and Price Peaks
Bitcoin Cash has garnered significant interest from large institutional investors, with the price hitting a new peak for 2024 at $289.4 on February 12. This surge brought its year-to-date gains to an impressive 30%. The Santiment chart indicates that BCH’s market cap soared to $5.4 billion before a slight pullback to $5.3 billion, whereas Litecoin’s market cap lags behind at $5.1 billion.
Trading Volumes and Investment Potential
Bitcoin Cash has consistently outperformed Litecoin in terms of trading volume over the last three months, with BCH reaching a peak trading volume of $730.4 million for February 2024, more than double LTC’s monthly peak of $315.5 million. This indicates a higher market participation within the BCH ecosystem and may signal better short-term price prospects for BCH compared to LTC.
Whale Activity and Future Predictions
Recent trends show an increased buying pressure from crypto whales, a key factor propelling BCH in the valuation race. Santiment’s supply-held by addresses chart reveals that whales with balances of 100,000 BCH have been actively accumulating, purchasing 50,000 BCH worth approximately $11.6 million from January 1 to February 14. In just the last four days, these whales have bought 10,000 BCH, representing about 25% of the 2024 net inflows, indicating intensified buying pressure. This whale activity is closely correlated with previous rallies, suggesting a positive outlook for BCH’s price in the near future.
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