Key Points
- Bitcoin Cash halving is around the corner, and BCH recently hit its highest price since 2021 when it recorded its ATH of approximately $3,780.
- BCH surged to about $697 recently before seeing a correction.
The forked crypto Bitcoin Cash is making headlines just ahead of its halving after seeing its highest price performance since back in 2021.
At the moment of writing this article, BCH is trading at $611 after hitting $697 recently. In the past seven days, the coin is up by $24.27% on CoinMarketCap.
The Bitcoin Cash halving event is expected to take place on April 4.
BCH’s price spike triggers
The recent spike in price for BCH can be attributed to a few triggers.
Bitcoin Cash halving
First of all, the anticipation surrounding the upcoming Bitcoin Cash halving, which is scheduled to take place on April 4, has contributed to the bullish sentiment.
The upcoming halving event will cut block mining rewards by 50%. This is expected to decrease inflation and make the coin more scarce. In the past, such events have caused the price of Bitcoin (BTC) to increase significantly.
Bitcoin will experience its own halving event on April 20. Both BTC and BCH will have their respective halvings at the same block height. However, a change in the mining algorithm resulted in BCH having a different mining rate and, therefore, a different halving date.
Roger Ver places the spotlight on BCH
The second factor that may have triggered a spike in price for BCH is the fact that the coin has returned to the spotlight following the publication of a book by Roger Ver. This reignited debates about the ethos behind Bitcoin Cash and Bitcoin.
From a technical point of view, BCH’s positive performance seems to be defying the overall market trends, and it’s worth noting that its bullish trend is not just a short-term phenomenon.
The digital asset has more than doubled its price since the beginning of the year.
Coinbase Derivatives announced the introduction of futures trading for Bitcoin Cash at the beginning of March.
Bitcoin Cash network expects an update in May
In 47 days, on May 15th, 2024, there will also be an update to the Bitcoin Cash network. This update will implement the CHIP 2023-04 Adaptive Blocksize Limit Algorithm.
This algorithm is designed to have minimal impact on the existing dynamics and incentives within the Bitcoin Cash ecosystem.
The current 32 MB cap will remain as the base “stand-by” value, and any increases by the algorithm will be supported by actual transaction volume as additional capacity.
More information about this algorithm can be found on gitlab.com.
