Bitcoin Cash Soars 10% Post-Halving, Bucks Market Trend Ahead of Bitcoin Halving

Bitcoin Cash (BCH) surged 10% after completing its reward halving, rising to $660 and becoming one of the few gainers in a tepid market. Bitcoin (BTC), which will undergo its own halving later this month, remained relatively unchanged over 24 hours. BCH's halving reduces its block reward to 3.125 BCH, lowering the supply of new coins. Open interest in BCH-tracked futures increased significantly ahead of the event, indicating expectations of increased price volatility.

Bitcoin Cash Surges 10% Post-Halving, Defying Tepid Market Amid Anticipation of Bitcoin Halving

London, April 14, 2023 - Bitcoin Cash (BCH) has experienced a remarkable 10% surge in value following the completion of its reward halving event, distinguishing itself as one of the few cryptocurrencies exhibiting gains in a relatively subdued market. In contrast, Bitcoin (BTC), whose own halving event is scheduled later this month, has remained largely unchanged over the past 24 hours.

At the time of writing, BCH traded at $660 during European morning hours, a price level last witnessed in December 2021. Despite this recent surge, the token remains 80% below its all-time high of $3,700, set in December 2017.

The halving event has reduced Bitcoin Cash's block reward to 3.125 BCH. Halving refers to the 50% reduction in the reward for mining transactions, thereby decreasing the rate at which new coins are issued and consequently limiting the new supply available.

Market analysts have anticipated Bitcoin's own halving, scheduled for April 20, as a potential catalyst for a bullish trend for the token. Historically, halvings have preceded significant market rallies. The previous halving in 2020 triggered a 1,000% surge to an all-time high of $69,000 approximately a year and a half later.

Open interest on BCH-tracked futures has witnessed a surge to $700 million earlier this week, up from below $200 million in March. This increase indicates a rise in leveraged bets anticipating increased price volatility.

The broader cryptocurrency market has exhibited minimal fluctuations over the past 24 hours due to the absence of significant market-moving factors. Bitcoin hovered around $66,300, marking a modest 0.3% gain over the previous day. The CoinDesk 20, a comprehensive index encompassing major tokens excluding stablecoins, declined by 0.7%.

Ether (ETH), BNB Chain's BNB, and Solana's SOL demonstrated positive growth of approximately 1%, while Dogecoin (DOGE), Polkadot's DOT, XRP, and Cardano's ADA experienced declines of up to 1.2%.

According to Alex Kuptsikevich, a senior market analyst at FxPro, the current lull in the cryptocurrency market was expected, with traders likely awaiting macroeconomic stimuli before making significant moves.

"While Bitcoin's inability to gain momentum is concerning, we observed a weaker dollar and stronger stock indices the previous day, which typically stimulates risk appetite," Kuptsikevich explained. "The cryptocurrency market's sluggish performance can be attributed to the accumulation of overbought conditions and apprehension ahead of the monthly labor market report, which is scheduled for release tomorrow."

"Nonetheless, we believe the current weakness represents a period of consolidation within the ongoing bull market, largely dismissing the likelihood of a long-term reversal," he added.