Bitcoin Cash: Effects of the Fourth Birthday and the Latest Halving
Bitcoin Cash (BCH) Celebrates Its Fourth Birthday: What Did the Latest Halving Bring?
Bitcoin Cash (BCH) is now celebrating its fourth birthday, coinciding with its fourth block reward halving. This historic event occurred at block height 840,000, bringing significant changes to the operation of this popular cryptocurrency.
Reduction in Bitcoin Cash Miner Rewards
The halving of Bitcoin Cash miner rewards resulted in a reduction from 6.25 BCH to 3.125 BCH. This is a significant event that will impact not only the earnings of cryptocurrency miners but also the entire BCH market.
Sharp Decline in BCH Post-Halving
Despite the traditional post-halving price increase, BCH experienced a sharp decline. Industry expert Aaryamann Shrivastava from BeInCrypto even predicted a 14% price drop for BCH following this event, a forecast that proved to be accurate.
Reasons Behind the BCH Price Drop
David Shares, well-known in the Bitcoin Cash community, attributed the cryptocurrency’s price drop to a decrease in mining power as miners shifted their resources to Bitcoin (BTC) in anticipation of its upcoming halving.
Current Market Status of BCH
Currently, Bitcoin Cash shows some improvement, with a price around $619. This is, however, 83.8% lower than the historical peak of BCH, which reached $3,785 in December 2017.
The Future of Bitcoin Cash and Bitcoin
It is also worth noting that Bitcoin, the original cryptocurrency from which Bitcoin Cash emerged, is set to undergo a halving in April. Analyses suggest that this upcoming event may differ from previous halvings, largely due to the rise in institutional adoption and the success of spot Bitcoin ETFs in the USA. These factors are expected to make this halving unique and potentially have different effects compared to previous ones.
