Bitcoin Cash (BCH), a fork of Bitcoin, made its second closing on Thursday halving. The price of Bitcoin Cash fell last Wednesday but quickly recovered, rising nearly 15% on Thursday. After the halving, BCH’s bigger brother provided valuable information.
Recovery after Bitcoin C(r)ash rally
Bitcoin Cash has seen quite a rally over the past three months, rising by 147.85%. Anticipation of the event pushed the price of BCH to a three-year high of $705 on Monday. It seems that last Thursday’s halving was taken into account.
Still, the price of Bitcoin Cash fell 9.94% to $572.21 the day before the halving, according to data from CoinMarketCap. However, after the halving, the price quickly recovered and reached $604, a high of around 5.5%.
Bitcoin Cash’s rapid recovery demonstrates its relevance among market participants and continued demand among traders. Mining expert @DavidShares notes that miners have migrated from Bitcoin Cash to the Bitcoin network. This resulted in slow block production as Bitcoin Cash headed towards the halving.
The shared Hashing The algorithm makes it easier for miners to switch from BCH mining to BTC mining. This was one of the factors that led to a sharp correction last Wednesday.
Consequences of “open interest” due to the halving
The Bitcoin Cash Network halving was completed 16 days before the Bitcoin halving. The event marks a major milestone for BCH as open interest increased by almost 25% in response.
Open Interest refers to the total number of outstanding Bitcoin futures or options contracts in the market. It is a measure of the amount of money invested in Bitcoin derivatives at a given time.
Data from Coinanalyze show that total open interest in BCH futures was $674 million on Thursday, compared to $506 million on Wednesday before the halving.
In 2017, Bitcoin Cash came about because a group of people in the community disagreed about how Bitcoin should be developed further. The infamous Nakamoto impersonator Craig Wright is one of the people behind the project.
Do you want to always be one step ahead of the market? Join our vibrant Discord community with more than 10,000 members! Here you can easily discuss the latest crypto trends and expectations.