Before the halving event, there was talk and guessing about what might happen. The price of Bitcoin Cash had gone up by a big 147.85% in the last three months. Even though it dropped a bit just before the event, it went back up quickly.
On Wednesday, Bitcoin Cash took a quick fall after three months of going up. But soon after, it bounced back up. This happened as the blockchain finished its second halving. Halving is when the rewards for mining are cut in half.
Bitcoin Cash Halving Event
Bitcoin Cash is a cryptocurrency created to be faster and cheaper to use compared to Bitcoin (BTC). On April 8, 2020, Bitcoin Cash experienced its first halving event, where miner rewards decreased from 12.5 BCH to 6.25 BCH.
Leading up to the halving, there was much speculation. Over the past three months, the price of Bitcoin Cash surged by 147.85%, and in the last 30 days alone, it increased by 24%.
However, just before the halving, there was a slight setback. Bitcoin Cash’s price dipped by 9.94% to $572.21. Yet, shortly after the halving, it swiftly rebounded, reaching $604, marking a spike of around 5.5%.
The drop in price resulted in total liquidations amounting to $3.9 million, primarily impacting long positions at $3.3 million, while short positions made up $569,540, according to CoinGlass data.
Bitcoin Cash price dip. Source: CoinGlass
Bitcoin Cash Futures and Mining Trends
A big thing happened in the Bitcoin Cash world with its futures perpetual contracts. The open interest (OI), which shows how much people are interested in these contracts, hit a record high of $708.75 million. This suggests that more and more people are getting interested in and investing in Bitcoin Cash.
Since then, the OI has continued to climb, reaching even greater heights at $799.23 million. This surge in open interest suggests a heightened level of activity and speculation surrounding Bitcoin Cash futures.
Amidst these developments, a user known as “DavidShares” shared insights with his 17,500 followers regarding the mining landscape of Bitcoin Cash. According to DavidShares, many miners had already shifted their focus to mining Bitcoin in anticipation of the halving event.
Additionally, DavidShares highlighted a decline in hash rates following the halving. The network has validated a total of 840,004 blocks, with only four blocks being validated since the halving event, as reported by Bitcoin Unlimited data. This decline in hash rates indicates potential changes in mining behavior and network dynamics following the halving.
Source: DavidShares
Bitcoin Cash: Forks and Controversies
In 2017, Bitcoin Cash emerged as a separate entity from Bitcoin, stemming from disagreements within the community regarding scaling solutions and reducing transaction fees to accommodate increasing demand. This split marked a significant divergence in the trajectory of the cryptocurrency.
Merely two years later, Bitcoin Cash underwent yet another fork, sparking controversy within the mining community. This time, the split caused discord as some miners failed to transition to the new chain, resulting in a wasteful allocation of resources and fracturing the network’s unity.
Miners were seen using their resources to mine 14 empty blocks on the old chain, even though most of the Bitcoin Cash network had already decided these blocks were not valid and didn’t accept them. This shows that there are still problems and things that could work better in the Bitcoin Cash mining world.
Meanwhile, the highly anticipated Bitcoin halving looms on the horizon, scheduled to occur on April 20, a mere 16 days away. This event carries significant implications for the broader cryptocurrency market and is awaited with great anticipation by investors and enthusiasts alike.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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