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Four days before the Bitcoin Cash (BCH) network halving, the cryptocurrency recorded significant gains, with the asset’s open interest in derivative products increasing more than three times, and attracting the attention of crypto community members.
BCH has risen more than 15% in 24 hours and more than 33% in the past week, according to data from CoinMarketCap. Bitcoin Cash open interest has skyrocketed from $213 million recorded last week to $706 million now, as bullish sentiment grows among traders ahead of the halving event, according to data from CoinGlass. It shows that there is.
Bitcoin Cash halved in 4 days
Bitcoin Cash was created in 2017 as the first hard fork version of Bitcoin. This network is expected to provide cost-effective transactions after expanding the blocks to incorporate more blocks.
The upcoming halving is the second for Bitcoin Cash, the first being in 2020, and there has been much speculation about how this event will affect the network and token.
Halving is a mechanism built into the blockchain code that reduces the reward of mining blocks by 50%. Similar to Bitcoin, Bitcoin Cash’s halving occurs every four years, or after 210,000 blocks, reducing the generation rate and new supply of BCH. With a total supply cap of 21 million, BCH will fight inflation through its halving.
As of this writing, the Bitcoin Cash halving is 4 days and 941 blocks away. By the end of the event on April 4th, the network’s block reward will have decreased from 6.25 BCH to 3.125 BCH. In particular, Bitcoin’s halving is coming up in 23 days.
Growing interest in BCH
The surge in Bitcoin Cash open interest indicates an increase in leveraged bets and expectations for higher price volatility around the halving. Analysts say the asset could rise from its current trading level of $568 to $600 by April 1 and rise to $2,000 in the coming months as more capital flows into the ecosystem. We predict that there will be.
Additionally, Coinbase, the largest U.S. cryptocurrency exchange, is considering launching monthly cash settlement and margin futures contracts for BCH on April 1, providing a means of inflows into the network.
Meanwhile, the upcoming halving has doubled Bitcoin Cash’s hashrate in the past three months, making the asset’s mining business 0.2% to 0.4% more profitable than Bitcoin mining.
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