Bitcoin Cash (BCH) is experiencing a surge ahead of its upcoming halving event. Currently trading at $574.84 with a 9.06% increase, BCH has sparked significant trading activity and futures perpetual contracts reached a historic peak in open interest of $708.75 million, marking a 18.26% rise in a single day and a 165% increase over the week. As miners ramp up efforts in anticipation of the halving, the Bitcoin Cash hash rate has doubled in the past week, reflecting increased computational power on the network.
Bitcoin Cash Soars Ahead of Halving, Historic Futures Interest Surge
Bitcoin Cash (BCH) has experienced a remarkable surge in value and trading activity, reaching $574.84 and surging by 9.06% in the past 24 hours. This upward trajectory is largely attributed to the anticipation of the second BCH halving event, scheduled for next week.
The halving event, which will occur on April 4 according to NiceHash, has triggered a flurry of trading activity as traders position themselves for the impending market impact. March 28 witnessed substantial liquidations totaling $190,140 in short positions and $211,870 in long positions.
Moreover, Bitcoin Cash futures perpetual contracts have reached historic levels in open interest (OI). As reported by CoinGlass, the OI surged by an impressive 18.26% in a single day and an astonishing 165% over the week, reaching $708.75 million. This surge in interest significantly surpasses the previous peak in May 2021, when OI stood at $684.12 million, coinciding with BCH's five-year high of $1,399.
In stark contrast, just before the first BCH halving in 2020, futures open interest was significantly lower at $63.29. This surge in open interest reflects the heightened anticipation surrounding the upcoming halving event.
The first BCH halving in April 2020 witnessed a reduction in miner rewards from 12.5 BCH to 6.25 BCH. In response to this upcoming halving, miners have ramped up their efforts, as evidenced by the doubling of the Bitcoin Cash hash rate in the past week, as highlighted by "DavidShares," a prominent user on X. Hash rate is a critical indicator of the computational power within a proof-of-work blockchain, reflecting mining and transaction processing capacity.
While Bitcoin approaches its fourth halving on April 21, poised to break new records, Bitcoin Cash's price remains below its all-time high of $4,355, set in December 2017, as per CoinMarketCap. The earlier scheduling of the BCH halving compared to Bitcoin's is attributed to a temporary algorithm adjustment implemented by Bitcoin Cash in 2017, accelerating the block creation process.
As the countdown to the BCH halving continues, the surge in value, trading activity, and open interest futures contracts paints a picture of heightened anticipation and bullish sentiment within the crypto community. The event is expected to have a significant impact on the market, potentially driving BCH's price even higher.
