Bitcoin Cash (BCH) Open Interest (OI) and its price have experienced a significant decline since its halving, eliminating the brief surge in momentum leading up to the April 4 event.
According to CoinGlass data, on April 12, the OI for Bitcoin Cash dropped by a massive 47% to $378.3 million from its peak of $708.5 million before the BCH halving.
The decline in OI coincided with a 13% decrease in the price of BCH. CoinMarketCap data reveals that most of the price decline occurred on April 10, with a steep drop of 7.51% within a three-hour window after four days of tight fluctuation between $676 and $691.
Over the past seven days, Bitcoin Cash has been trading between $605 and $691.
This behavior is a complete turnaround from the week after the 2020 halving event, which was Bitcoin Cash’s first-ever halving. During that time, Bitcoin Cash experienced upward momentum, rising 4.7%, while OI increased by 10% to $73.86 million.
Bitcoin Cash, which was just under three years old at the time, has faced debates over its use cases, particularly its lower transaction processing costs and reduced energy requirements for verifying new blocks.
There has been renewed conflict between the Bitcoin (BTC) and Bitcoin Cash communities. Blockstream CEO Adam Back recently urged early Bitcoin adopter Roger Ver to rejoin the Bitcoin community after he had left for the Bitcoin Cash community a few years ago. Ver, also known as “Bitcoin Jesus,” is a strong advocate for Bitcoin Cash, claiming that it aligns more closely with Satoshi Nakamoto’s original vision for Bitcoin and is better suited to serve as both a store of value and a currency due to its lower transaction fees.
Meanwhile, many investors are positioning themselves in Bitcoin, anticipating a rise as the halving approaches next week. Currently, Bitcoin’s OI stands at $34.89 billion, approximately 15 times higher than it was eight days before the halving in May 2020.
It is important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research before making any investment or trading decisions.