Bitcoin Cash price adds nearly 15% gains after halving

Bitcoin Cash (BCH), a fork of Bitcoin, completed its halving event on Thursday, marking the second mining reward halving for BCH. The asset’s price declined on Wednesday but quickly recovered and climbed nearly 15% on Thursday.

Coinglass data shows that nearly $5.3 million in derivatives positions were liquidated in the past day. This is likely attributed to the sharp correction and BCH price recovery. 

Bitcoin Cash price recovers post halving

Bitcoin Cash was created in 2017 as a fork from Bitcoin. The token completed its second-halving event on Thursday, after which the mining reward has been reduced from 6.25 BCH to 3.125 BCH. 

The peer-to-peer payment network’s halving has been completed 16 days prior to Bitcoin’s halving. The event marks a key milestone for BCH since the asset’s open interest surged nearly 25% in response to it. Data from Coinalyze shows that the total open interest in BCH futures is $674 million on Thursday, up from $506 million on Wednesday, prior to halving.

BCH Open Interest Statistics 

The anticipation surrounding the event pushed BCH’s price to a three-year peak of $705 on Monday. BCH price was hit by a correction on Wednesday and dipped to $561.70 to recover by nearly 15% after the halving on Thursday. 

Bitcoin Cash’s swift recovery shows the asset is relevant among market participants and there is sustained demand among traders. Mining expert behind the X handle @DavidShares notes that miners moved from BCH to BTC network, resulting in slow and intermittent block production as the former headed into the halving event. The shared hashing algorithm makes it easier for miners to switch from mining BCH to BTC and it was one of the factors that ushered a steep correction in Bitcoin Cash on Wednesday. 

At the time of writing, BCH is trading at $668.3 on Binance.