Second-ever halving event causes Bitcoin Cash price to experience fluctuations.

Bitcoin Cash (
BCH
) experienced a temporary decline in its three-month-long rally on Wednesday, but quickly recovered after the completion of its second-ever halving, which involves cutting mining rewards in half.
Bitcoin Cash is a cryptocurrency and blockchain network that operates on a proof-of-work system. It was specifically designed to be faster and cheaper to use compared to Bitcoin (
BTC
). The first halving event for Bitcoin Cash occurred on April 8, 2020, resulting in a reduction of miner rewards from 12.5 BCH to 6.25 BCH.
Leading up to the halving, there was speculation about its impact on the price of Bitcoin Cash. Over the past three months, the price of Bitcoin Cash has increased by 147.85%, and by 24% in the last 30 days.
However, in the day before the halving, the price of Bitcoin Cash dropped by 9.94% to $572.21, according to CoinMarketCap data. Fortunately, the price quickly recovered after the halving, surging by approximately 5.5% to reach $604.
The recent price decline resulted in liquidations totaling $3.9 million, predominantly affecting long positions, which accounted for $3.3 million. Short positions, on the other hand, made up $569,540, as reported by CoinGlass data.
Following the price dip, long positions in Bitcoin Cash were liquidated, amounting to $3.3 million. Source: CoinGlass
On March 29, Cointelegraph reported that open interest (OI) in Bitcoin Cash futures perpetual contracts reached its all-time high of $708.75 million.
Since then, the OI has continued to rise, currently reaching an even higher value of $799.23 million.
Furthermore, a user named “DavidShares” with 17,500 followers explained that many miners had already switched to mining Bitcoin prior to the halving. He also noted a decline in hash rates since the halving event. The network has now validated a total of 840,004 blocks, with only four blocks validated since the halving, according to Bitcoin Unlimited data.
Source:
DavidShares
In 2017, Bitcoin Cash split from Bitcoin due to disagreements within the community regarding scaling and reducing transaction fees to accommodate the growing demand.
Additionally, in November 2019, Cointelegraph reported that miners wasted resources mining 14 empty blocks on the old Bitcoin Cash chain, which the majority of the network had already deemed invalid and rejected.
Meanwhile, the highly anticipated Bitcoin halving is scheduled to take place on April 20, just 16 days from now.
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