Bitcoin Cash (BCH) Price Fluctuates After Halving Event

Bitcoin Cash ($BCH) just marked a significant milestone in its lifecycle. The cryptocurrency has recently undergone its halving event at a block height of 840,000.

This once in a 4-years event finished in the early morning Asia time.

Bitcoin Cash Price Climbs Back to $619 After Dip

The recent halving reduced Bitcoin Cash miners’ rewards from 6.25 $BCH to 3.125 $BCH. While halvings generally coincide with price increases, $BCH experienced a sharp decline.

Industry experts had anticipated the possibility of this drop. On April 1, Aaryamann Shrivastava, an analyst at BeInCrypto, forecasted a 14% drawdown for $BCH following the event.

Read more: Bitcoin Cash ($BCH) Price Prediction 2024/2025/2030

Shrivastava predicted a downward trajectory for $BCH, suggesting that profit-taking would lead the cryptocurrency to lose its support at $650 and further slip to $625. The prediction indicated that breaking this support level would lead $BCH to fall to $572, marking a 14% decrease.

Meanwhile, David Shares, a well-known figure within the Bitcoin Cash community, attributed the price drop to a decrease in mining hashrate. Miners had shifted their focus to Bitcoin (BTC) in anticipation of the halving. This shift slowed down block production times on the $BCH network until the difficulty algorithm could adjust.

“[The hashrate drop] also caused the price of $BCH to drop suddenly to about $565 USD low for the day,” David Shares explained.

Daily Bitcoin Cash Mining Difficulty. Source: Coin Dance

Yet, as of the time of writing, $BCH has seen a recovery, trading at $619. Still, it’s important to note that $BCH is trading 83.8% below its all-time high of $3,785, achieved in December 2017.

Read more: Bitcoin Cash: A Complete Guide to What It Is and How It Works

Bitcoin, the original cryptocurrency from which Bitcoin Cash forked, is also set to undergo a halving in April. However, analysts suggest the upcoming Bitcoin halving might diverge from past patterns. Increasing institutional adoption and the success of spot Bitcoin exchange-traded funds (ETFs) in the US are expected to play a role in making this halving unique.