Bitcoin Cash surged 20% to $544, driven by rising on-chain usage and bullish futures positioning. Transaction activity increased significantly, with $119.76 million in BCH transferred. However, a declining network hashrate and increased spot selling present potential headwinds for the rally.
Bitcoin Cash posted a strong performance, rising as much as 20% to an intraday high of $544. The move reflected rising on-chain usage and growing bullish conviction among futures traders.
On-chain data highlights renewed liquidity flows across the BCH blockchain. Between February 1st and 17th, the number of daily transactions increased from 9,769 to 14,240.
The total value of BCH transferred during this period reached $119.76 million. This accounted for roughly 1.16% of the asset’s total market capitalization.
Speculative positioning in the derivatives market continues to support the rally. Data from CoinGlass shows the OI-Weighted Funding Rate has turned positive.
A positive reading indicates that long positions dominate Open Interest (OI), increasing the likelihood of price continuation. Short liquidations reached approximately $1.5 million, nearly ten times higher than long liquidations.
Despite supportive data, BCH’s declining hashrate presents a potential risk. A decline indicates reduced mining activity, which can weaken network security.
Spot market behavior introduces an additional headwind. Data shows a rise in selling activity, with total spot sell-offs reaching $1.1 million over the past day.
