Bitcoin Cash Faces Severe Price and Open Interest Drops Post-Halving Event
Summary:
Following its halving event on April 4, Bitcoin Cash (BCH) witnessed a drastic fall in both Open Interest (OI) and its price over the past week. Post-halving, BCH's OI fell by 47% to $378.3 million from its peak of $708.5 million. The price of BCH also suffered a 13% decline, with the most significant decrease of 7.51% occurring within a three-hour span. These figures contrast sharply with the positive momentum BCH experienced after its inaugural halving in 2020. The downturn has rekindled debates on Bitcoin Cash's use cases and has resulted in a rebirth of conflicts between the Bitcoin and Bitcoin Cash communities.
Over the past week, Bitcoin Cash (BCH) has endured a severe slump in both Open Interest (OI) and market price, following its halving event on April 4. As recorded on April 12, the OI for Bitcoin Cash nosedived by an enormous 47%, from its top figure of $708.5 million to a mere $378.3 million, post the BCH halving, as reported by CoinGlass data. Coinciding with this, Bitcoin cash also experienced a 13% crash in its price. The brunt of the price fall occurred on April 10, marking a sharp 7.51% decline within a short span of three hours, following four days of relatively stable oscillation between $676 and $691, according to CoinMarketCap data. Recently, Bitcoin Cash value has been fluctuating between $605 and $691 over the past 7 days. This drop represents a stark contrast to the events following Bitcoin Cash's inaugural halving event in 2020 where it witnessed considerable gains of 4.7% and OI grew 10% to $73.86 million. Despite its relative infancy of under 3 years at the time, Bitcoin Cash already had lowered transaction processing cost and reduced energy requirement for block verification as its unique selling points. However, its use cases still foster debates. The recent downturn also triggered a renewed clash between the Bitcoin and Bitcoin Cash communities. On March 18, Adam Back, CEO of Blockstream, urged prior Bitcoin supporter Roger Ver via an X post to rejoin the Bitcoin community, a group he abandoned in favor of Bitcoin Cash some years back. Roger Ver or "Bitcoin Jesus," vehemently supports Bitcoin Cash, holding it more in accordance with Satoshi Nakamoto’s original ideology for Bitcoin due to its lower transaction fees, making it a better candidate as both a value store and a currency. As Bitcoin Cash struggles, many investors are investing in Bitcoin, anticipating a rally as its halving event draws near next week. According to recent data, Bitcoin’s OI currently stands at $34.89 billion, an impressive 15 times higher than eight days prior to its 2020 halving in May. To be clear, this article is not a recommendation or an investment advice. Each investment and trading decision embodies risks and interested parties should undertake their own investigation before proceeding.
Published At
4/12/2024 9:28:48 AM
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