Just a week after its halving event, Bitcoin Cash (BCH), the token based on the hard fork of the original Bitcoin (BTC) blockchain, experienced a sharp decline in its prices.
A block-halving event lowers the rate at which new tokens of a specific cryptocurrency can be created. For Bitcoin, a halving event slashes the amount of tokens that can be earned by successfully mining a block. By reducing the amount of tokens entering the market, block halving helps counteract inflation.
Bitcoin Cash, created in 2017, had its first halving event in April 2020. Back then, the token’s value had appreciated by 4% over the following days. But following the second block halving of BCH on April 3, 2024, the token witnessed a steady decline in its value, with the token's price and open interest taking a nosedive earlier today.
As of writing, BCH is priced at $556, down by 17% over the last 24 hours. Researchers and market analysts claimed the decline in BCH’s pricing signals a drop in Bitcoin’s cost. Others have cautioned that Bitcoin may become volatile following its block halving on April 21, 2024.