Wednesday marked the beginning of a temporary decline in the three-month boom that Bitcoin, the proof-of-work cryptocurrency that was forked from Bitcoin (BTC), had been experiencing.
The drop occurred not long after the blockchain celebrated the completion of its second-ever halving, which is an event that reduces mining payouts by a factor of two.
The first halving of Bitcoin Cash took place on April 8, 2020, bringing the incentives for miners down from 12.5 BCH to 6.25 BCH following the event.
The halving was the subject of speculation, which resulted in the price of BCH increasing by 147.85% over the course of the previous three months and by 24% during the next thirty days.
On the other hand, according to data provided by CoinMarketCap, the price of Bitcoin Cash dropped by 9.94% on the day leading up to the halving, reaching a low of $572.21. Nevertheless, the cryptocurrency swiftly recovered after the halving, reaching $614 in a short amount of time.
The price of BCH has continued to fall by 2.40 percent over the past twenty-three hours. According to CoinGlass, the momentary price decrease ultimately resulted in liquidations totaling $4 million over the course of twenty-four hours.
The majority of these liquidations were caused by long positions, which accounted for $2.92 million, while short positions accounted for $1.08 million. The amount of open interest has continually increased, reaching a total of $782 million.
As a result of conflicts among the community around scaling and transaction fees, Bitcoin Cash split off from Bitcoin in the year 2017. As of 2019, it went through yet another split, which sparked controversy among miners due to the fact that some of them had not switched to the new chain, which led to the loss of resources.
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