Bitcoin Cash (BCH), the proof-of-work cryptocurrency forked from Bitcoin (BTC), faced a brief downturn in its three-month rally on Wednesday. The dip occurred shortly after the blockchain completed its second-ever halving, an event that slashes mining rewards in half.
Bitcoin Cash underwent its first halving on April 8, 2020, reducing miner rewards from 12.5 BCH to 6.25 BCH. Speculation surrounded the halving, driving BCH’s price up by 147.85% over the past three months and 24% over the last 30 days.
However, in the day leading up to the halving, Bitcoin Cash experienced a 9.94% price drop, falling to $572.21, according to CoinMarketCap data. Nevertheless, the cryptocurrency quickly rebounded after the halving, reaching $614. BCH is still down 2.40% over the past 23 hours. The temporary price decline resulted in 24 hours liquidations totaling $4 million, primarily affecting long positions with $2.92 million, while short positions accounted for $1.08 million, according to CoinGlass. The open interest has continued to surge, reaching $782 million.
Bitcoin Cash forked from Bitcoin in 2017 due to disagreements within the community regarding scaling and transaction fees. In 2019, it experienced another split, causing controversy among miners as some had not upgraded to the new chain, resulting in wasted resources.