- Despite the reduction in block rewards, Bitcoin Cash saw a notable price surge, reaching levels not seen since 2021, peaking at approximately $700.
- Following the BCH halving, the network’s mining difficulty surged to its highest level since 2019, reaching 761,589.2. Concurrently, miner rewards decreased from 0.0003 to 0.00017.
Bitcoin Cash recently experienced its halving, occurring shortly before Bitcoin’s scheduled quadrennial event. Unlike Bitcoin, this halving was the second occurrence for the Bitcoin Cash (BCH) network. The reduction in block rewards to 3.125 BCH happened on Thursday, following a similar event in April 2020 when block rewards dropped to 6.25 BCH.
Following the halving, BCH saw a significant price spike, reaching levels not seen since 2021. It peaked at approximately $700 early on Friday before stabilizing around $660, marking a 10% increase over the past week. However, this price surge is notably below its all-time high of over $9,500 in 2017.
Originally forked from the Bitcoin chain in 2017, Bitcoin Cash was designed as a cheaper and faster alternative. Despite its market cap standing at around $13 billion, significantly lower than Bitcoin’s $1.3 trillion, BCH’s price has steadily risen, mirroring Bitcoin’s upward trajectory.
In contrast, Bitcoin (BTC) has seen steady growth and reached new all-time highs since the approval of spot Bitcoin ETFs in January, currently trading around $71,000. Bitcoin’s halving event is anticipated around April 20, occurring every 210,000 blocks.
The long-awaited Bitcoin Cash halving event occurred successfully this week, as reported by Crypto News Flash. This significant event resulted in the block reward decreasing from 6.25 to 3.125 BCH. This reduction in the block reward aims to decrease the supply of coins in circulation, which could potentially lead to an increase in prices.
Following the halving, BCH’s network mining difficulty has surged to its highest level since 2019, reaching 761,589.2. Concurrently, miner rewards have decreased from an average of 0.0003 at the beginning of the year to 0.00017.
Bitcoin Cash (BCH) Price Action
Soon after the Bitcoin Cash (BCH) halving event, the BCH price experienced a surge past $700 for the first time since 2021.
According to on-chain data from Santiment, Bitcoin’s Relative Strength Index (RSI) currently stands at 79, reminiscent of levels seen during the March surge. The RSI functions as an oscillator, measuring the speed and magnitude of price fluctuations, typically signaling overbought conditions when surpassing 70 and oversold conditions when falling below 30.
While the overbought RSI indicates a need for caution moving forward, it does not necessarily predict a downturn for Bitcoin Cash. Instead, it highlights robust investor interest and continued buying momentum for BCH, indicating ongoing price appreciation and investor enthusiasm for investing in Bitcoin Cash.
The recent surge in Bitcoin Cash prices coincides with a reduction in selling pressure from miners. In anticipation of the halving event, Bitcoin Cash miners have resumed accumulating the cryptocurrency.
Data from IntoTheBlock reveals that miner holdings reached a five-year low of 6.15 million BCH by March 28. However, recent figures show a rise in their balance by 40,000 coins, reaching 6.19 million BCH by April 2.
With Bitcoin Cash miners accumulating approximately $242 million worth of BCH between March 29 and April 3, investor sentiment is likely to improve, potentially driving BCH prices towards $1,000 post the April 4 halving event.
