Bitcoin Cash Price Sees Turbulence with Halving Event

Crypto News- Bitcoin Cash (BCH) faced a turbulent Wednesday, as its value dropped to $656 after enjoying a three-month rally. The stumble came just as the blockchain completed its second-ever halving, a crucial event where mining rewards are halved.

Bitcoin Cash Price Sees Turbulence with Halving Event

Originally envisioned as a faster and cheaper alternative to Bitcoin (BTC), Bitcoin Cash saw its first halving on April 8, 2020, reducing miner rewards from 12.5 BCH to 6.25 BCH.

Anticipation ran high ahead of this halving, with BCH prices soaring by 147.85% over the past three months and 24% in the last 30 days. However, the day preceding the halving saw a significant setback, with BCH plunging by 9.94% to $572.21, according to CoinMarketCap.

But as the halving passed, BCH swiftly rebounded, hitting $604, marking a 5.5% spike.

Bitcoin Cash Liquidations Amidst Price Dip: Long Positions Hit Hardest

The price dip triggered liquidations worth $3.9 million, predominantly impacting long positions at $3.3 million, with short positions accounting for $569,540, based on CoinGlass data. CoinTelegraph previously reported that open interest in BCH futures perpetual contracts hit all-time highs of $708.75 million on March 29, and this figure has since surged further to $799.23 million.

Meanwhile, miner “DavidShares” informed his 17,500 followers that many miners had shifted to mining Bitcoin before the halving, contributing to a decline in hash rates post-halving. With only four blocks validated since the halving event, according to Bitcoin Unlimited data, the network has now confirmed a total of 840,004 blocks.

Bitcoin Cash: A History of Forks and Controversies

Bitcoin Cash’s history includes a 2017 fork from Bitcoin due to disagreements over scaling and transaction fee reduction. Just two years later, another split ensued, causing controversy within the mining community as some miners failed to upgrade to the new chain, resulting in inefficient resource allocation.

In November 2019, reports emerged of miners wasting resources on 14 empty blocks on the old chain, despite the majority of the Bitcoin Cash network deeming them invalid.

With the highly anticipated Bitcoin halving scheduled for April 20, just 16 days away, the cryptocurrency world remains on edge for further market movements and network dynamics.