Bitcoin Cash Traders Return To Profits As Whales Ramp Up Activity
According to on-chain data from Santiment, both short-term and long-term Bitcoin Cash holders are now in profits after a recent 13% rally. Here are the key points to note:
1. Market Value to Realized Value (MVRV) Ratio: This metric measures the ratio between the Bitcoin market cap and the realized cap. When the MVRV ratio is less than 1, it indicates that the market as a whole is experiencing losses, while a ratio greater than 1 suggests unrealized profits.
2. Modified MVRV Ratios: The 365-day and 30-day timebound versions of the MVRV ratio track the value specifically for investors who bought within the past year and month, respectively.
3. Recent Trend: The graph shows that the Bitcoin Cash MVRV ratio had been negative for both groups, indicating losses. However, with the recent rally, both short-term and long-term traders have returned to profits.
4. Potential for Profit-Taking: As traders enter into profits, there is a higher likelihood of selling and potentially impacting the rally. Currently, Bitcoin Cash traders are only slightly in gains, so the risk of profit-taking causing a top is not high.
5. Whales’ Impact: The activity of whales, or large holders, could play a crucial role in further increasing the cryptocurrency’s value. While their recent activity has increased, it remains to be seen if they will continue to drive the rally.
In conclusion, Bitcoin Cash traders have returned to profits following the recent rally, and the involvement of whales could determine the future trajectory of the cryptocurrency.
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