Bitcoin Cash experiences extreme volatility after its second Halving

On April 4, 2024, Bitcoin Cash (BCH) reached a major milestone with its second halving, sparking significant price volatility. As the crypto industry prepares for the highly anticipated Bitcoin halving, eyes are turning to the potential implications of these two events.

Bitcoin Cash Completes its Second Halving

The second Bitcoin Cash halving occurred at block 840,000, reducing miner rewards from 6.25 BCH to 3.125 BCH per block, according to

This reduction in supply caused significant price movements: a drop of 9% a few hours before the event, followed by a rebound of more than 5% just after.

Buy your first cryptos with the Binance platform
This link uses an affiliate program

Despite this short-term volatility, BCH experienced an increase of 15.45% over the week and 33% over the month preceding the halving. On April 1, it even reached a three-year high of $701, when anticipation of the halving was at its height. However, at the time of writing, the BCH price has fallen back to $613.88.

A BTC halving with uncertain implications

As attention turns to the upcoming Bitcoin halving scheduled for April 20, speculation is rife about its potential impact on the crypto market as a whole. Although some expect prices to rise, recent research suggests that the effect of halving may be less significant than previous ones.

Historical data shows a decreasing impact of Bitcoin halvings over time. After impressive gains of 5500% and 1250% following the halvings of 2012 and 2016, the third halving cycle of 2020 only recorded an increase of 700%. This trend suggests a more moderate effect of the fourth halving on the price of BTC.

However, the successful launch of Spot Bitcoin ETFs and their high trading volumes could influence halving dynamics.

As Bitcoin Cash emerges from a turbulent halving and Bitcoin prepares for its own, the crypto market is holding its breath. Although history suggests a bullish impact, changing market maturity and the emergence of new factors like Spot Bitcoin ETFs cast a shadow of uncertainty.

Discover our free newsletter
This link uses an affiliate program

Maximize your experience with our 'Read to Earn' program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.

Similar Posts