July 16, 2024
Bitcoin Cash Open Interest Soars Beyond $700M Ahead of BCH and BTC Halvings
Bitcoin Halving

Bitcoin Cash Open Interest Soars Beyond $700M Ahead of BCH and BTC Halvings

Bitcoin Cash (BCH) has witnessed a remarkable surge in open interest, surpassing $700 million, as traders brace for the upcoming BCH halving event scheduled for April 4. This surge in open interest marks a significant milestone for the cryptocurrency, reminiscent of levels last seen in May 2021, when its price was nearly 2.5 times higher.

Anticipation Builds Ahead of Halving

Currently trading at $574.84, Bitcoin Cash has experienced a notable 9.06% increase over the past 24 hours. Traders are actively securing their positions in anticipation of the impending halving, as indicated by data from NiceHash. On March 28 alone, $190,140 in short positions and $211,870 in long positions were liquidated, underscoring the heightened activity surrounding the event.

Record High Open Interest

As per CoinGlass data, open interest in BTC Cash futures perpetual contracts reached an all-time high of $708.75 million on the same day, marking an 18.26% spike in just 24 hours and a staggering 165% surge over the past 7 days. This surge in open interest signifies a strong investor sentiment and suggests a bullish outlook for Bitcoin Cash leading up to the halving.

Source: CoinGlass

Miners Ramp Up Efforts

As the halving approaches, miners are intensifying their efforts in preparation for the event. Notably, the Bitcoin Cash hash rate has doubled in the past week, as highlighted by user “DavidShares” to his 17,900 followers. This increase in hash rate reflects heightened mining activity, indicating miners’ optimism about the future prospects of Bitcoin Cash.

Bitcoin Cash vs. Bitcoin

While Bitcoin Cash gears up for its halving, it is worth noting that Bitcoin, the original cryptocurrency, is also approaching its fourth halving on April 21 amid record highs. However, despite its recent surge in open interest and mining activity, Bitcoin Cash still lags significantly behind its all-time high of $4,355, reached in December 2017, according to CoinMarketCap data.

Halving Dynamics

The BCH halving occurs slightly earlier than Bitcoin’s halving due to Bitcoin Cash’s temporary use of a different algorithm to adjust its mining difficulty back in 2017, which accelerated the block creation time. With the Bitcoin halving scheduled for April 21, both cryptocurrencies are poised for significant events that could shape their future trajectories in the market.

Image by Sketchepedia on Freepik

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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