Bitcoin Cash Price Swings After Halving
The cryptocurrency Bitcoin Cash went through the second halving in its history. The price of the coin experienced a rally.
Bitcoin Cash, the most popular and successful Bitcoin fork, underwent halving on the night of April 4. Just like the Bitcoin network, its fork has a programmed halving event that occurs every four years. For Bitcoin Cash, this is the second halving in history. The reward per block this time around has decreased from 6.25 to 3.125 BCH.
In the run-up to the event, the price of Bitcoin Cash rose 42% over the past two weeks, but the asset began to fluctuate after the halving. At one point, the asset was down more than 8%. This led to liquidations totaling $3.9 million, mainly affecting $3.3 million in long positions. At the time of writing, Bitcoin Cash has started to recover and is up 11% on a daily basis.
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Halving isn't the only major development for Bitcoin Cash. The network is preparing for an update in mid-May that will adjust block size based on the average size of recent blocks. This is necessary to reduce spam attacks and lower transaction costs.
These two important developments have revived the Bitcoin Cash community and its miners, as evidenced by a noticeable increase in hashrate. On April 1, the figure peaked at 8 EH/s before stabilizing at 3.78 EH/s. This suggests that miners are quickly adapting to the decrease in rewards.
