Bitcoin Cash (BCH) – A fresh take on the cryptocurrency scene
Bitcoin Cash (BCH) price surged past $280 on February 12th, experiencing a 20% increase in the past week, surpassing Litecoin (LTC) in the race to achieve a $6 billion market capitalization by 2024.
Bitcoin Cash has gained significant momentum recently, overtaking Litecoin in terms of market capitalization. These two cryptocurrencies are derived from Bitcoin and were created to establish more efficient peer-to-peer payment systems.
The ongoing rally in the crypto market has resulted in substantial price gains for both Bitcoin (BTC) and Bitcoin Cash (BCH), while Litecoin (LTC) has only experienced a modest 20% increase between October 16th, 2023, and February 14th, 2024. Litecoin’s price has struggled to gain momentum since its most recent halving in August 2023, currently trading at $70, which is a 30% decrease from its pre-halving price.
On the other hand, Bitcoin Cash has attracted attention from large institutional investors in recent weeks. On February 12th, the price of BCH reached a new peak for 2024 at $289.4, resulting in a 30% gain for the year so far.
Moreover, when looking beyond short-term price fluctuations, Bitcoin Cash has overtaken Litecoin in terms of market capitalization. The chart from Santiment below demonstrates that BCH’s market cap reached a peak of $5.4 billion in 2024, with a slight pullback to $5.3 billion on February 14th, while Litecoin’s ecosystem is currently valued at $5.1 billion.
Given this development, Bitcoin Cash’s lead over Litecoin in the race to reach a $6 billion valuation milestone is growing. The increased trading volume and short-term price momentum suggest that BCH will further extend its lead.
Over the past three months, Bitcoin Cash has consistently recorded significantly higher spikes in trading volume compared to Litecoin. During the most recent upswing, BCH reached a peak trading volume of $730.4 million in February 2024, surpassing LTC’s monthly peak trading volume of $315.5 million by more than 100%.
While Litecoin’s relatively flat price action and lower daily volumes might discourage swing traders, a deeper analysis of Bitcoin Cash’s on-chain data trends reveals that whale investors are flocking to BCH. This influx of whale investors is likely to trigger another surge in the coming days.
The higher trading volume in the BCH ecosystem compared to Litecoin indicates greater market participation. Strategic investors may interpret this as a positive signal that Bitcoin Cash has better short-term price prospects than Litecoin.
Another crucial factor propelling Bitcoin Cash ahead of Litecoin in the race to achieve a $6 billion market valuation is the increased buying pressure from crypto whales. Recent trends suggest that BCH price could experience more bullish action.
The chart below illustrates the real-time changes in the number of coins held by large-holder wallets. It shows that whales holding balances of 100,000 BCH (~$250,000) have been consistently buying in recent months. Between January 1st and February 14th, these whales acquired a total of 50,000 BCH, valued at approximately $11.6 million based on the 10-day simple moving average price of $232 per coin.
Interestingly, a closer look at the chart reveals that whales have acquired 10,000 BCH, which accounts for 25% of the net inflows in 2024, in the last four days alone. This indicates that crypto whales have intensified their buying pressure this week.
Considering the historical correlation between whale buying trends and previous rallies, it is highly likely that Bitcoin Cash will continue to extend its lead over Litecoin in the coming days.
