Bitcoin Cash Value Swells ahead of Second Halving Event; Bitcoin Prepares for Fourth Halving
Summary:
Bitcoin Cash (BCH) has seen a significant increase in value ahead of its upcoming halving event, leading to an unprecedented rise in open interest for its futures perpetual contracts. Meanwhile, Bitcoin gears up for its fourth halving amidst record highs. The halving for BCH occurs slightly earlier due to an algorithm adjustment in 2017. The Bitcoin halving is expected to occur on April 21.
Bitcoin Cash (BCH) is presently valued at $574.84, marking a significant 9.06% rise over the last 24 hours. The surge comes ahead of the impending second BCH halving event slated for the upcoming week. This event seems to have traders on high alert as they fortify their positions, based on data from NiceHash. March 28 saw liquidation of $190,140 in short positions and $211,870 in long positions. Alongside this, the day also recorded an unprecedented increase in open interest (OI) concerning Bitcoin Cash futures perpetual contracts, peaking at a record $708.75 million—an 18.26% increase within 24 hours, and 165% in a week's duration according to CoinGlass.
This surge in open interest is an echo from May 2021, when OI was at $684.12 million while BCH was trading at its five-year peak price of $1,399. This is a stark contrast to the figures from the corresponding date in 2020, when futures open interest was a mere $63.29, just prior to the very first BCH halving on April 8, 2020. During this historic event, mining rewards plunged from 12.5 BCH to 6.25 BCH. However, it seems miners see this as an incentive to up their mining activities ahead of the upcoming halving. A user known as “DavidShares,” who has a following of 17,900, revealed a 100% increase in the Bitcoin Cash hash rate over the past week.
The hash rate is a reflection of the total computational power harnessed for mining and processing transactions on a proof-of-work blockchain, represented by the number of hashes created. As Bitcoin steels for its fourth halving on April 21 amidst new records, Bitcoin Cash is yet to regain its December 2017 high of $4,355 as per CoinMarketCap.
The reason why BCH halving takes place a bit earlier than Bitcoin halving is that Bitcoin Cash used a different algorithm to adjust its mining difficulty back in 2017, thus accelerating the block creation timeframe. The Bitcoin halving event is expected to take place on April 21.
Published At
3/29/2024 9:15:03 AM
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