Other than the most awaited Bitcoin halving days, a few other things are happening with the crypto market, which is pushing coins like Bitcoin Cash. Bitcoin Cash is a PoW-based cryptocurrency created after a hard fork of the Bitcoin chain and is heavily influenced by the Bitcoin price. For days, Bitcoin Cash price has continuously presented an uptrend and is trending among the crypto community.
In this blog, let’s discuss what’s happening with Bitcoin Cash and why is it trending in the market.
Bitcoin Cash Price Analysis
Bitcoin Cash price has surged to a three-year high with $699.45 in value after surging above 120% in a month. Currently, it is trading at $682.23 with a day hike of 15%. It is ranked 13th on CoinmarketCap with a market capitalization of $13,401,198,205 after a 14% surge. The price surge is because of the increased transactions for the token, where the trading volume has surged to $1,487,721,200 after a 190% hike in just a day.
Bitcoin Cash’s graph seems to be moving the same as it did three years ago, surging to $1509.11. Despite this, it’s still 84% away from its all-time high value, which it achieved almost six and half years ago.
Why Is Bitcoin Cash Trending?
The fear & greed index of the crypto market indicates extreme greed in the market where the market is performing well compared to the other days. Bitcoin is valued at $97k, whereas Ethereum is at $3500 and has maintained that value for a few days now.
These factors must have impacted the value of Bitcoin Cash as well, but there are two other reasons behind the Bitcoin Cash price surge.
Bitcoin Cash is a Commodity
The Commodity Futures Trading Commission (CFTC) recently announced a few cryptocurrencies, including Bitcoin Cash as a commodity. Now, the investors can focus on their crypto investments rather than worrying about the regulatory compliances on the token. This news came out in response to the ongoing legal issues related to the KuCoin exchange.
As a result of this CFTC support, Coinbase is going to launch a few services related to the Bitcoin Cash derivatives, which will provide more security and stability in the network.
Bitcoin Cash Halving Event
The Bitcoin Cash halving event is all set to happen tomorrow, even before the Bitcoin Halving event. Similar to Bitcoin, Bitcoin Cash also goes through halving every four years, and the block rewards get reduced to maintain the scarcity of the token. Presently, the block reward for BCH is 6.26 BCH, but after the halving, it will be 3.125 BCH.
Also Read: Top 4 Altcoins to Skyrocket Your Wealth Post Bitcoin Halving
A price surge in BCH value is expected after this halving event. On this expectation, 230,000 new investors have stepped their foot into investing in BCH in the last ten days. The number of BCH holders has surged from 25.88 Million on the 21st of March to 26.11 Million on the 31st of March.
Bitcoin Cash Price Prediction After Halving
Bitcoin Cash is undergoing halving for the second time after its launch in 2017. Even before halving, the BCH has surged to $690 in value and might cross the $700 mark before halving. In the best-preferred situations, a price surge to $1000 or above might happen.
Back in May 2021, when it surged to $1649, based on similar patterns, RektCapital suggested a rally up to $1,343.
As there are chances of a price surge ahead, many PoW tokens usually face a correction after such incidents. If the similar happened in the case of Bitcoin Cash, it could fall to as low as $450 before rebounding back to a higher value.
Conclusion
If the situation stays the same, a higher price jump is expected for the Bitcoin Cash price. As of now, it’s above the expected price range and has crossed the $680 mark, aiming for $700 before entering the halving.
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