Bitcoin Cash price drops along with 47% decrease in open interest post-halving.

The price and open interest (OI) of Bitcoin Cash (BCH) have experienced a significant decline in the week following its halving event, undoing a brief period of increased momentum leading up to the event on April 4.
On April 12, the OI for Bitcoin Cash dropped by a massive 47% from its peak of $708.5 million before the halving, according to data from CoinGlass. Its OI sat at $378.3 million at that time.
The decline in OI coincided with a 13% drop in the price of BCH. The majority of the price decline occurred on April 10, with a steep drop of 7.51% within a three-hour window. Prior to that, the price had been fluctuating between $676 and $691 for four days, as reported by CoinMarketCap.
Bitcoin Cash has been trading between $605 and $691 over the past seven days.
This behavior is in stark contrast to the week after the 2020 halving event, which was the first-ever halving for Bitcoin Cash. During that time, BCH saw upward momentum, rising 4.7%, while its OI increased by 10% to $73.86 million.
Bitcoin Cash, which is just under three years old, has faced debates regarding its use cases, particularly its lower transaction processing costs and reduced energy requirements for block verification.
The Bitcoin and Bitcoin Cash communities have also been at odds. Blockstream CEO Adam Back recently called on Roger Ver, an early Bitcoin adopter who had since become a prominent figure in the Bitcoin Cash community, to rejoin the Bitcoin community.
Ver, often referred to as “Bitcoin Jesus,” strongly advocates for Bitcoin Cash, claiming that it aligns more closely with the original vision of Satoshi Nakamoto. He argues that Bitcoin Cash is better suited to serve as both a store of value and a currency due to its lower transaction fees.
Meanwhile, many investors are taking positions in Bitcoin, anticipating a rise in its price as the halving approaches next week.
At the time of writing, Bitcoin’s OI stands at $34.89 billion, which is approximately 15 times higher than it was eight days before the halving in May 2020.
Please note that this article does not provide investment advice or recommendations. Readers should conduct their own research before making any investment or trading decisions.