Bitcoin Cash (BCH) surged 10% after successfully completing its reward halving event that cut the block reward to 3.125 BCH.The cryptocurrency market remains mostly unchanged, with bitcoin – whose halving occurs later this month – trading at just above $66,300, up 0.3% in the past 24 hours.

Bitcoin Cash experienced a 10% increase following its rewards reduction event, making it one of the rare winners in a mostly sluggish market, while Bitcoin, which will undergo its own rewards reduction later this month, saw minimal price change during the same time frame.

In the European morning market, BCH was traded at $660 – a price last seen in December 2021. The token currently sits 80% lower than its all-time high of $3,700 reached back in December 2017.
Bitcoin Cash currently awards 3.125 BCH as its block reward to miners. The process called “halving” reduces this reward by half during which new coins creation rate decreases, resulting in a smaller fresh coin supply.

The bitcoin halving, an event where the reward for mining new blocks is reduced in half, is projected to occur on April 20th, according to monitors. Historically, this occurrence has been followed by a bull market for bitcoin. For instance, the last halving in 2020 triggered a surge of over 1,000% that brought the token’s price to a record high of $69,000 around one and a half years later.

Read more: Bitcoin Halving, Explained

This week, the open interest for BCH-linked futures contracts surged to $700 million from a previous low of around $200 million in March. This growth indicates that traders have taken on greater leveraged positions, anticipating heightened price fluctuations, as mentioned before.

During the last 24 hours, cryptocurrency markets showed minimal fluctuation due to the absence of significant market drivers. The price of Bitcoin hovered slightly above $66,300, marking a 0.3% increase, while the CoinDesk 20 Index, which measures the performance of prominent tokens except stablecoins, experienced a 0.7% decrease.

Ether (ETH), BNB from the BNB Chain, and Solana’s SOL experienced a 1% increase. However, Dogecoin (DOGE), Polkadot‘s DOT, XRP, and Cardano‘s ADA saw decreases of up to 1.2%.

According to Alex Kuptsikevich, a seasoned market analyst at FxPro, this current period of inactivity was anticipated, and traders are probably holding off on making any moves until significant economic events occur.

“Kuptsikevich expressed concern over Bitcoin’s failure to advance, but noted a weaker dollar and robust stock markets the previous day. This situation has increased investor risk appetite. The lackluster performance of the cryptocurrency market can be explained by built-up overbought conditions and apprehension prior to tomorrow’s release of the monthly employment report.”

He expressed that despite the present vulnerability, we view it as a strengthening phase in the ongoing bull market, making a significant correction or shift to a bear market highly unlikely.

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2024-04-04 15:09