Besides the most anticipated Bitcoin halving, there are several other things happening in the crypto market that are pushing up coins like Bitcoin Cash. Bitcoin Cash is a PoW-based cryptocurrency created after a hard fork of the Bitcoin chain and is highly influenced by the price of Bitcoin. Over the past few days, the price of Bitcoin Cash has shown a continuous upward trend, which has become a trend among the cryptocurrency community.
In this blog, we will discuss what is happening with Bitcoin Cash and why it is trending in the market.
Bitcoin Cash Price Analysis
The price of Bitcoin Cash has soared to a three-year high of $699.45, after surging more than 120% in a month. It is currently trading at $682.23, a daily increase of 15%. It is ranked 13th on CoinmarketCap, with a market capitalization of $13,411,198,205 after a 14% jump. The price hike was due to increased trading of the token, with trading volume increasing by 190% in just one day to $1,487,721,200.
Bitcoin Cash's graph appears to be moving in the same way as it did three years ago, when it skyrocketed to $1,509.11. Despite this, it is still 84% off its all-time high reached about six and a half years ago.
Why is Bitcoin Cash trending?
The Cryptocurrency Market Fear and Greed Index shows extreme greed in the market when the market is doing well compared to other days. Bitcoin is worth $97,000, while Ethereum is worth $3,500 and has held that value for several days.
Although these factors would have affected the value of Bitcoin Cash as well, there are two other reasons behind the soaring price of Bitcoin Cash.
Bitcoin Cash is a commodity
The Commodity Futures Trading Commission (CFTC) recently announced several cryptocurrencies, including Bitcoin Cash as a commodity. Investors can now focus on investing in cryptocurrencies without worrying about the regulatory compliance of their tokens. This news was announced in response to ongoing legal issues related to the KuCoin exchange.
As a result of this CFTC support, Coinbase plans to launch several services related to Bitcoin Cash derivatives, which will improve the security and stability of the network.
Bitcoin Cash Halving Event
The Bitcoin Cash halving event is scheduled to take place tomorrow, ahead of the Bitcoin halving event. Like Bitcoin, Bitcoin Cash also undergoes a halving every four years, and block rewards are reduced to maintain the token's scarcity. Currently, the BCH block reward is 6.26 BCH, but after the halving, it will be 3.125 BCH.
Also read: Top 4 Altcoins that will skyrocket your wealth after Bitcoin Halving
After this halving event, we expect a price increase in BCH value. Based on this expectation, in the past 10 days he has seen 230,000 new investors step into his BCH investment. The number of BCH holders surged from 25.88 million on March 21st to 26.11 million on March 31st.
Bitcoin Cash price prediction after halving
Bitcoin Cash is undergoing its second halving since its launch in 2017. Even before the halving, the value of BCH has soared to $690 and could cross the $700 mark before the halving. In the most favorable circumstances, the price could soar to over $1000.
Back in May 2021, RektCapital was hinting at a ~$1,343 rally when it surged to $1,649 based on a similar pattern.
Many PoW tokens usually face correction after such incidents as the price may skyrocket in the future. If something similar were to happen with Bitcoin Cash, it could drop to $450 before rebounding to higher values.
conclusion
If this situation remains the same, the price of Bitcoin Cash is expected to rise further. It is currently above its expected price range at over $680 and is aiming for $700 before the halving.
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