In the past 24 hours, Bitcoin Cash (BCH) has seen significant growth, earning its place among the top gainers. This surge was driven by increased demand in both the derivatives and spot segments.
Rising Demand for Bitcoin Cash
Since February, demand for BCH has been steadily recovering. From its lowest February prices, BCH has rebounded by over 44%, with most gains achieved in the last 24 hours, marking a 24% increase. The breakthrough of the three-month resistance indicates a potential trend reversal.
Derivatives Activity and Whale Investors
With BCH's rally, there was a notable surge in derivatives and spot segment activity. Derivatives volume surged by 94%, with open interest rising 84%. Spot segment activity turned positive at the end of February. Whale investors significantly contributed to the net positive flows into BCH.
Short Sellers Face Consequences
The recent price surge negatively impacted short sellers. Short position liquidations amounted to $2.66 million out of a total of $3.12 million. This may force investors to buy more coins to cover losses, adding momentum to the market.
The recent surge in Bitcoin Cash highlights the strengthening of positions in the derivatives and spot markets. While the sustainability of this trend could be challenged by upcoming market events, the current dynamics indicate a potential revival of interest in the cryptocurrency.
