The cryptocurrency derived from Bitcoin experienced its own block reward halving this week, exhibiting significant price fluctuations before stabilizing. Bitcoin Cash, as it’s known, saw its value drop to as low as $565 before the halving, but has since rebounded.
Currently, Bitcoin Cash is trading at approximately $676, marking an 11.3% increase for the day and nearly a 20% rise for the week, according to CoinGecko data.
The halving occurred at block 840000, at 22:45 UTC on March 4th, when the price of Bitcoin Cash was $574.90. Notably, just before the halving, it dipped to $565, having previously reached a peak of $607 earlier that day, and a weekly high of $696 on April 1st.
Bitcoin Cash, a variant of Bitcoin created through a fork in 2017, shares many features with its predecessor, including a block reward halving approximately every four years or every 210,000 blocks. In this recent halving, which is the second since the split from the original Bitcoin blockchain, the reward for Bitcoin Cash miners reduced from 6.25 BCH to 3.125 BCH.
Before the halving, the price of BCH surged to its highest level since November 2021, reaching $718.62. Its all-time high, achieved in December 2017, was $3,785.82.
Proposed by a group of Bitcoin developers, Bitcoin Cash aims to enhance transaction speed and reduce fees compared to Bitcoin by accommodating a higher number of transactions per block. It operates on the proof-of-work consensus mechanism and has a maximum supply of 21 million coins. In 2018, Bitcoin Cash underwent a fork, resulting in the creation of Bitcoin Cash ABC (later rebranded as eCash) and Bitcoin Cash SV (Satoshi Vision).
Meanwhile, Bitcoin itself is on the verge of its own block reward halving later this month. Analysts hold diverse opinions regarding its potential impact on the cryptocurrency’s price, with some foreseeing six-figure prices post-halving. However, crypto exchange Coinbase advises caution, emphasizing that past performance does not necessarily predict future success or performance.
